We can not Support any Bailouts of defined Benefit Pension plans. We must reform the system to defined
Contribution plans. Trillions in unfunded Pensions will critically effect State budgets, economies and the Nation! We must do this before our nation is bankrupted. We are in a critical period where if these programs are reformed we will dodge the dire outcome with much less anguish!
The states facing public Pension bankruptcy under current models by 2020:
Hawaii
Oklahoma
Arkansas
Louisiana
Illinois
Indiana
Kentucky
West Virginia
New Jersey
Connecticut
And by 2030 states included are:
We can include those already mentioned and add
Colorado
Kansas
Missouri
Ohio
New Hampshire
New Mexico
Mississippi
Alabama
Maryland
Delaware
Vermont
Maine
Rhode Island
Michigan
California
Minnesota
Montana
South Carolina
Massachusettes
Idaho
Wyoming
Nebraska
Washington
Virginia
Oregon
Arizona
Alaska
That leaves the only states not facing an insolvent
Public Pension fund as being:
Nevada
Utah
North Dakota
South Dakota
Iowa
Tennessee
North Carolina
Georgia
Florida
New York
This constitutes only 10 states that will not be in jeopardy by the year 2030, bars on this study!
This is with projections of state revenue and investment that may not be sustained as assumed as the economy continues to falter and unemployment remains at historically unprecedented levels since the Great Depression.
The only solution is not taxation, but must be accomplished by shifting to defined contribution plans. And better yet even, allowing the employees to direct their own retirement plans, thus eliminating the government management of this system. We have life insurance, car insurance, and of course Health insurance, as well as others. This could and should be the solution that takes Precident.
Can you even imagine a fire or life, or retirement, car insurance programs? It would be a debacle! The private market place will provide the solvency solution.
This is based on a study by
Professors Robert Novy-Marx & Joshua D. Rauh
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