Largest Public Pensions Face $8.4 Trillion Hole

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Offline Letsbereal

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Dallas Police Pensions Collapses As Record Number Of Cops Seek Full Withdrawals
« Reply #40 on: September 20, 2016, 11:28:31 PM »
Dallas Police Pension On Verge Of Collapse As Record Number Of Cops Seek Full Withdrawals
20 September 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-09-20/dallas-police-pension-verge-collapse-record-number-cops-seek-full-withdrawals

Retirement Crisis Looms As Average U.S. Household Has Saved $2,500 For Retirement
20 September 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-09-20/retirement-crisis-looms-average-us-household-has-saved-2500-retirement
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Offline Letsbereal

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #41 on: October 10, 2016, 03:21:37 PM »
2 Simple Charts Show Which State Pensions Are Most Likely To Enforce Benefit Cuts
10 October 2016
, Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-10-10/2-simple-charts-show-which-state-pensions-are-most-likely-enforce-benefit-cuts
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Offline Letsbereal

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #42 on: October 13, 2016, 06:58:22 AM »
Pension Benefits In Tiny California Town To Be Slashed As "Ponzi Scheme" Is Exposed
12 October 2016
, Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-10-12/loyalton-california-pensions
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Offline Letsbereal

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Wells Fargo Is Your Last Warning: Check Your 401(k)
« Reply #43 on: October 14, 2016, 03:33:55 PM »
Wells Fargo Is Your Last Warning: Check Your 401(k)
14 October 2016
, by Suzanne Woolley (Bloomberg)
http://www.bloomberg.com/news/articles/2016-10-13/wells-fargo-is-your-last-warning-check-your-401-k

The bank’s scandal is a useful, and urgent, reminder: Don’t sink your retirement money into your company’s stock.
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Offline Letsbereal

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Dallas Police Retiring in Droves, Taking Lump Sum Pensions
« Reply #44 on: October 17, 2016, 12:43:51 PM »
Dallas Police Retiring in Droves, Taking Lump Sum Pensions, Fearing the Money Isn’t There (And It Isn’t)
16 October 2016
, by Michael Shedlock (Mishtalk)
https://mishtalk.com/2016/10/16/dallas-police-retiring-in-droves-taking-lump-sum-pensions-fearing-the-money-isnt-there-and-it-isnt/
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Offline Letsbereal

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Hedge Funds Cost N.Y. Pension Plan $3.8 Billion, Report Says
« Reply #45 on: October 17, 2016, 05:32:08 PM »
Hedge Funds Cost N.Y. Pension Plan $3.8 Billion, Report Says
17 October 2016
, by Simone Foxman and John Gittelsohn (Bloomberg)
http://www.bloomberg.com/news/articles/2016-10-17/hedge-funds-cost-new-york-state-fund-3-8-billion-report-says

- Comptroller ‘has been frozen in place,’ state department says

- Report is politically motivated, comptroller’s office says

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Offline Letsbereal

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Divorce Is Destroying Retirement—especially for women
« Reply #46 on: October 18, 2016, 11:12:29 AM »
Divorce Is Destroying Retirement – Baby boomers suffer disproportionately from its financial fallout—especially women
17 October 2016
, by Ben Steverman (Bloomberg)
http://www.bloomberg.com/news/articles/2016-10-17/divorce-is-destroying-retirement

Divorce in the U.S. surged in the 1970s and 1980s as the baby boomers reached adulthood. As they enter retirement, they’re still splitting up, and it’s having a disproportionate effect on women.
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Offline decemberfellow

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #47 on: October 18, 2016, 11:27:27 AM »
^^^^^^^^Fell at about the same time morality started falling,  takes a strong bond to stand down the attacks of the devil and his dark forces.  Marriage is a commitment, high on God's list,  one of the goals of the powers that wanna be is to break up families destroy marriage, wipe out true love, all in the name of control.

They turned this once great nation into a ME first society, totally opposite of God,s commands.

We are all seeing and feeling the results. 
Rev21:4
And God shall wipe away all tears from their eyes; and there shall be no more death, neither sorrow, nor crying, neither shall there be any more pain: for the former things are passed away.


Who am I
 https://www.youtube.com/watch?v=v7Fk6dt_uHo

Offline Letsbereal

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The Next 10 Years Will Be Ugly for Your 401(k)
« Reply #48 on: October 26, 2016, 09:06:36 PM »
The Next 10 Years Will Be Ugly for Your 401(k)
26 October 2016
, by Suzanne Woolley (Bloomberg)
http://www.bloomberg.com/news/articles/2016-10-26/the-next-10-years-will-be-ugly-for-your-401-k

It doesn’t seem like much to ask for—a 5% return. But the odds of making even that on traditional investments in the next 10 years are slim, according to a new report from investment advisory firm Research Affiliates.
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Offline Letsbereal

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #49 on: November 03, 2016, 09:43:18 PM »
Government Pension Plans Are Headed For Disaster
3 November 2016
, by Robert Fellner - The Mises Institute (Zero Hedge)
http://www.zerohedge.com/news/2016-11-03/government-pension-plans-are-headed-disaster
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Offline Letsbereal

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #50 on: November 06, 2016, 07:26:17 PM »
Dallas "Pension Fund Panic" As Mayor Warns Of 130% Property Tax Hike To Avoid Collapse
6 November 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-11-06/dallas-pension-fund-panic-mayor-warns-130-property-tax-hike-avoid-collapse
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Offline Letsbereal

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Pensions Slash Hedge Fund Allocations After Decade Of Subpar Returns
« Reply #51 on: November 16, 2016, 06:36:20 AM »
Pensions Slash Hedge Fund Allocations After Decade Of Subpar Returns
15 November 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-11-15/pensions-slash-hedge-fund-allocations-after-decade-subpar-returns
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Offline Letsbereal

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #52 on: November 17, 2016, 04:21:28 AM »
Illinois Pension Funding Ratio Sinks To 37.6% As Unfunded Liabilities Surge To $130 Billion
16 November 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-11-16/illinois-pension-funding-sinks-376-unfunded-liability-surges-130bn
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Offline Letsbereal

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #53 on: November 22, 2016, 03:13:28 PM »
Dallas Mayor Admits Police Pension Pushing City Toward "Fan Blades Of Municipal Bankruptcy"
21 November 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-11-21/dallas-mayor-admits-police-pension-pushing-city-toward-fan-blades-municipal-bankrupt
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Offline Letsbereal

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #54 on: November 29, 2016, 05:15:53 PM »
CalPERS Weighs Pros/Cons Of Setting Reasonable Return Targets Vs. Maintaining Ponzi Scheme
29 November 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-11-29/calpers-weighs-proscons-setting-reasonable-return-target-vs-maintaining-ponzi-scheme
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Offline Letsbereal

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #55 on: December 02, 2016, 01:11:49 AM »
After A "Run On The Pension Fund" Dallas Mayor Demands Halt Of Withdrawals
1 December 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-12-01/dallas-mayor-blasts-police-pension-board-demanding-halt-withdrawals-until-solvency-r
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Offline Letsbereal

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Stanford Study Reveals California Pensions Underfunded By $1 Trillion
« Reply #56 on: December 02, 2016, 09:05:36 PM »
Stanford Study Reveals California Pensions Underfunded By $1 Trillion Or $93k Per Household
2 December 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-12-02/stanford-study-reveals-california-pensions-underfunded-1-trillion-or-93k-household
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Offline Letsbereal

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #57 on: December 06, 2016, 03:15:54 PM »
Dallas Pension Showdown: Mayor Seeks To "Target Those Who Got Rich From System"
6 December 2016
, by Michael Shedlock (Zero Hedge)
http://www.zerohedge.com/news/2016-12-06/dallas-pension-showdown-mayor-seeks-target-those-who-got-rich-system

Dallas Mayor Files Lawsuit To Block Withdrawals From "Insolvent" Police Pension After "Run On The Bank"
6 December 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-12-06/dallas-mayor-files-lawsuit-block-withdrawals-insolvent-police-pension-after-run-bank
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Offline Letsbereal

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In Unprecedented Move, Dallas Pension System Suspends Withdrawals
« Reply #58 on: December 09, 2016, 03:00:57 AM »
In Unprecedented Move, Dallas Pension System Suspends Withdrawals
8 December 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-12-08/dallas-police-pension-finally-ends-run-bank-halting-withdrawals
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Offline windyacres

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #59 on: December 12, 2016, 02:14:42 AM »
In Unprecedented Move, Dallas Pension System Suspends Withdrawals


Zero Hedge
December 9, 2016

Two days after the Mayor of Dallas, Mike Rawlings, filed a lawsuit against the Dallas Police and Fire Pension system to block withdrawals, which he referred to as a “run on the bank” of an “insolvent” pension system in “financial crisis, the Pension’s board has finally taken steps to halt further withdrawals.  Of course, this delayed action has come only after $500 million in deposits have been withdrawn since just August.

According to the Dallas Daily News, an incremental $154mm in withdrawal requests were pending at the time the decision was made earlier today.

    The Dallas Police and Fire Pension System’s Board of Trustees suspended lump-sum withdrawals from the pension fund Thursday, staving off a possible restraining order and stopping $154 million in withdrawal requests.

    The system was set to pay out the weekly requests Friday. Pension officials said allowing the withdrawals would leave them without the liquid reserves required to sustain $2.1 billion fund.

    “Our situation is currently critical, and we took action,” Board chairman Sam Friar said.

Read more -


http://www.prisonplanet.com/in-unprecedented-move-dallas-pension-system-suspends-withdrawals.html

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Offline Letsbereal

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #60 on: December 13, 2016, 10:28:42 PM »
Not Just Dallas; Fort Worth Employees' Pension Plan In Deep Trouble
13 December 2016
, by Michael Shedlock (Zero Hedge)
http://www.zerohedge.com/news/2016-12-13/not-just-dallas-fort-worth-employees-pension-plan-deep-trouble

Dallas Police Resignations Soar As "Insolvent" Pension System Implodes
13 December 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-12-13/dallas-police-resignations-soars-insolvent-pension-system-implodes

Pension Ponzi Squared: New Jersey Wants To Sell Debt To Its Own Insolvent Funds
13 December 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-12-12/pension-ponzi-squared-new-jersey-wants-sell-debt-its-own-insolvent-pension-funds
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Offline Letsbereal

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #61 on: December 17, 2016, 08:55:48 PM »
Former Fed Advisor: State Pensions Time Bomb Spells Disaster For The US
17 December 2016
, by Michael Shedlock (Zero Hedge)
http://www.zerohedge.com/news/2016-12-17/former-fed-advisor-state-pensions-time-bomb-spells-disaster-us
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Offline Letsbereal

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #62 on: December 20, 2016, 06:21:36 AM »
CalPERS Announces Plans To Sell $15BN In Equities Over Next Two Years
19 December 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-12-19/calpers-announces-plans-sell-15bn-equities-over-next-two-years

A lower return assumption is warranted given low global interest rates and equity markets that are drastically overvalued by almost any historical measure. 

Moreover, for 3 out of the past 5 calendar years, CALPERS has missed their 7.5% return threshold and their 10-year cumulative returns are 6.2%, a far cry from their 7.5% projection.

Mathematical realities have to be weighed against the risk of disrupting the ponzi scheme and forcing several California cities to the brink of bankruptcy.
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Offline Letsbereal

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #63 on: December 22, 2016, 10:28:56 AM »
CalPERS Board Votes To Maintain Ponzi Scheme With Only 50bps Reduction Of Discount Rate
21 December 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-12-21/calpers-board-votes-maintain-ponzi-scheme-only-50bps-reduction-discount-rate

Meet The NY Pension "Strategist" Who Traded Allocations For "Hookers And Blow"
21 December 2016
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/2016-12-21/meet-ny-pension-head-portfolio-strategist-traded-hookers-and-blow-allocations
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Offline windyacres

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #64 on: December 23, 2016, 06:55:24 AM »
  The System Is About to Burst Open:
 TRILLIONS In Unfunded Pensions “Foreshadow A Bleak Future” 



Shaun Bradley
December 22nd, 2016
The Anti-Media.org


This article was written by Shaun Bradley and originally published at The Anti-Media.org.

Editor’s Comment: Decades of benefit promises to state workers, especially by socialistic large cities and left-leaning states, is reaching the point of no return. The promised money is not there, and there is no way to squeeze that much more out of the public – though many will probably try. Somebody is about to get screwed, and it probably won’t be the ones bailing out with golden parachutes.

Hordes of retirees are ready to cash in their benefits, but the coffers are running dry. Empty promises, smoke and mirrors are about to be exposed by the compounding pressure of debt piled to the roof.

Will this problem lead to bankruptcy for governments, or to riots and protests in the streets? What happens if the whole system ends up being one big I.O.U.? This is a huge problem that just can’t be overstated…

Pension Panic: The Coming Financial Bubble Nobody Is Talking About

by Shaun Bradley

For millions of public sector workers in the U.S., state-run pension funds are the only chance left for a comfortable retirement. In the hopes of providing a stable future for their families, an entire generation was duped into putting decades of their earnings into these supposedly ‘risk-free’ investments. Unfortunately, those who have entrusted the government to manage their life savings may end up destitute as a result.

Budgetary shortfalls that have plagued Detroit for years are now spreading to other municipalities. Since 2008, six local governments have been forced to renegotiate their debts in bankruptcy court, with many others on the same trajectory. The scale of the problem has been repeatedly understated by the media, but across the nation, a somber reality is beginning to set in.

States with large populations, like California, often find themselves in the spotlight when it comes to deficits, but there are several others that are in even worse shape. Illinois, New Jersey, and Connecticut are among those facing the biggest hurdles to meet their obligations to retirees. Instead of maintaining a surplus, politicians have continuously prioritized spending today on things like sports stadiums, for example, to ensure re-election. Policymakers on both sides of the aisle have echoed solutions that involve either massive cuts to benefits or shifting the financial burden onto the taxpayer. The price to prop up these insolvent funds will come in the form of higher property taxes, income taxes, and other stealth forms of subsidization.

The ongoing exodus of people from the Northeast to states that offer better opportunities and a lower cost of living is putting even more stress on the already fragile system. Pension payouts depend on the contributions of current workers, and as the labor force dwindles, so does the money available.

Pushing through substantial reforms is counter-intuitive for our representatives. If they do the responsible thing and defer excess spending in the present, it will undoubtedly have a negative impact on their voter base. America’s political pastime of kicking the can down the road continues, but the options to keep this shell game going are running out.

The rating agency Moody’s released a report in April of this year that outlined the scale of the shortfall:

“The unfunded liabilities of the various federal employee pensions systems, covering civilian and military employee benefits, amount to about $3.5 trillion, or 20% of US GDP…Additionally, Moody’s estimates that unfunded state and local government pension plan liabilities are of the same magnitude, bringing the total shortfall to 40% of GDP.”

These calculations don’t even include Social Security and Medicare, which compound the issue by trillions of dollars. As the baby boomer generation gets closer to retirement, the amount of money flowing out of these funds will only accelerate. Just this month, the Dallas Police and Fire Pension Fund was forced to freeze $154 million in withdrawals to prevent total failure. Emergency actions like this only serve to further erode the public’s confidence and foreshadow a bleak future for those anchored to the current system.

The promise of financial security from a bankrupt government needs to be seen for the fraud that it is. The ability to adapt when presented with unpleasant truths is crucial in this dynamic financial environment, especially when the path of least resistance has been rigged as a trap for those who fail to think critically about the future.


http://www.shtfplan.com/commodities/the-system-is-about-to-burst-open-trillions-in-unfunded-pensions-foreshadow-a-bleak-future_12222016?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+SHTFplan+%28SHTF+Plan+-+When+It+Hits+The+Fan%2C+Don%27t+Say+We+Didn%27t+Warn+You%29&utm_content=FeedBurner


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Offline windyacres

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Re: Largest Public Pensions Face $8.4 Trillion Hole
« Reply #65 on: January 04, 2017, 12:09:57 AM »
Dallas Pension Not Only “Ticking Time Bomb Ready To Explode,”
Public Policy Director Warns 



Zero Hedge
January 3, 2017

For months, if not years, we’ve warned that conflicted politicians and union bosses pursue a perverse set of goals in their management of pension funds, most of which have nothing to do with the application of sound financial principles.

Here’s how we summarized the situation back in the summer (see “An Unsolvable Math Problem: Public Pensions Are Underfunded By As Much As $8 Trillion“):

    Defined Benefit Pension Plans are, in many cases, a ponzi scheme.  Current assets are used to pay current claims in full in spite of insufficient funding to pay future liabilities… classic Ponzi.  But unlike wall street and corporate ponzi schemes no one goes to jail here because the establishment is complicit.  Everyone from government officials to union bosses are incentivized to maintain the status quo…public employees get to sleep better at night thinking they have a “retirement plan,” public legislators get to be re-elected by union membership while pretending their states are solvent and union bosses get to keep their jobs while hiding the truth from employees.

Then, just a couple of weeks ago, CalPERS confirmed our fears when they chose to lower their discount rate by only 50 bps to 7%, nearly a full point above their 6.2% projected annual returns over the next decade.  Even more startling was the open admission from Richard Costigan, chairman of the CalPERS finance committee, that the decision was motivated by the board’s desire to maintain the ponzi, saying: “this is just a start…municipalities and other government agencies need some breathing room before they absorb the impact.” 

Apparently we’re not the only ones growing increasingly concerned about the lack of financial discipline within these massive pension funds.  Lawrence Person’s BattleSwarm Blog recently interviewed the Director of the Texas Public Policy Foundation, James Quintero, who noted that many of the nation’s largest pensions are relying on “fuzzy math to make them work, or at least give the appearance of working.”

    When it comes to Texas’ public retirement systems, one of my greatest concerns is that there are other ticking time-bombs, like the DPFP, out there getting ready to explode. It’s not just Dallas’ pension plan that’s taken on excessive risk to chase high yield in a low-yield environment.

    Setting aside the issue of risk for a moment, the DPFP, like most other public retirement systems around the state, suffers from a fundamental design flaw. That is, it’s based on the defined benefit (DB) system, which guarantees retirees a lifetime of monthly income irrespective of whether the pension fund has the money to make good on its promises or not. This kind of system is akin to an entitlement program, warts and all, and is very much at the heart of pension crises brewing in Texas and across the country.

    One of the biggest problems with DB plans is that they rely on a lot of fuzzy math to make them work, or at least give the appearance of working. Take the issue of investment returns, for example. Many systems assume an overly optimistic rate of return when estimating a fund’s future earnings. Baking in these rosy projections is, among other things, a way to understate a plan’s pension debt.

    The common element in most, if not all, of these systemic failures is the defined benefit pension plan. Because of the political element as well as the inclusion of inaccurate investment assumptions in the DB model, these plans are almost destined to fail, threatening the taxpayers who support it and the retirees who rely on it. And sadly, that’s what we’re witnessing now across the nation.

Unfortunately, as Quinterro points out, when all those bad assumptions about future returns finally prove to be wildly optimistic it will be taxpayers left holding the bag.

    Let me preface this by saying that I’m not a lawyer nor do I ever intend to be one. However, Article XVI, Section 66 of the Texas Constitution plainly states that non-statewide retirement systems, like DPFP, and political subdivisions, like the city of Dallas, “are jointly responsible for ensuring that benefits under this section are not reduced or otherwise impaired” for vested employees. Given that, it’s hard to see how the city of Dallas—or better yet, the Dallas taxpayer—isn’t obligated in some major way when their local retirement system reaches the point of no return, which may be a lot closer than people think given all the lump-sum withdrawals of late.

 Asked whether other large pensions in Texas were as bad off as the Dallas Police and Fire Pension, Quinterro said simply, “If you’re a taxpayer or property owner in one of Texas’ major cities, I’d be concerned.”

A quick review of where some of Texas’ largest pensions stand, after one of the biggest bull market runs in history, helps explain Quinterro’s pessimism:





While “fuzzy math” can help these ponzi schemes elude the inevitable for a very long time, at some point they will eventually collapse.  And, with $6-8 trillion in outstanding liabilities at U.S. public pensions alone, we suspect the consequences of that collapse will not be pleasant.


http://www.prisonplanet.com/dallas-pension-not-only-ticking-time-bomb-ready-to-explode-public-policy-director-warns.html

Be Prepared