{"id":36323,"date":"2018-08-01T08:03:53","date_gmt":"2018-08-01T13:03:53","guid":{"rendered":"http:\/\/olduvai.ca\/?p=36323"},"modified":"2018-08-01T08:03:53","modified_gmt":"2018-08-01T13:03:53","slug":"five-trillion-dollars-doomed-us-pensions-shortfall-now-the-size-of-japans-economy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=36323","title":{"rendered":"Five Trillion Dollars! Doomed US Pensions’ Shortfall Now The Size Of Japan’s Economy"},"content":{"rendered":"
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Five Trillion Dollars! Doomed US Pensions’ Shortfall Now The Size Of Japan’s Economy<\/span><\/a><\/h3>\n<\/div>\n
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Scores of public pensions\u00a0across the United States are so massively underfunded that the shortfall is roughly equal to Japan’s GDP – the world’s third-largest economy, according to Moody’s Investors Service.<\/p>\n

State and local pension plans in the U.S. now have less than three- quarters of the money they need to meet their promised payouts<\/strong>, their lowest level since at least 2001, according to Public Plans Database figures weighted by plan size. In dollar terms the hole for state and local pensions is now $5 trillion<\/strong>, according to Moody\u2019s Investors Service.\u00a0–WSJ<\/a><\/p><\/blockquote>\n

If governments don’t increase taxes, convince pensioners to take less than they were promised or divert funds from elsewhere, an increasing number of funds face insolvency<\/a><\/b>, reports the\u00a0Wall Street Journal<\/em><\/a>.<\/p>\n

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In Kentucky, for example, a major pension for state employees had around\u00a016% of what it needs to fulfill its obligations<\/strong> based on 2017 fiscal year figures, according to the Public Plans database which tracks state and local pension funds. A Chicago municipal employee fund had\u00a0less than 30% of what it needed\u00a0<\/strong>during the same fiscal year, while New Jersey’s state pension is so underfunded it faces insolvency in 12 years\u00a0<\/b>according to a Pew Charitable Trusts Study.<\/p>\n

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For an example of what happens when a pension hits a brick wall, look no further than Central Falls, Rhode Island – a city of 19,359 which was forced to cut monthly checks to retired police and firefighters by as much as 55% as the entire town tried to stave off bankruptcy. Alas, the town still filed in 2011 – and while its financial situation has improved, retired city employees\u00a0aren’t getting their full pensions back.<\/p>\n

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Paul Grenon<\/em><\/figcaption><\/figure>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Five Trillion Dollars! Doomed US Pensions’ Shortfall Now The Size Of Japan’s Economy Scores of public pensions\u00a0across the United States are so massively underfunded that the shortfall is roughly equal to Japan’s GDP – the world’s third-largest economy, according to Moody’s Investors Service. State and local pension plans in the U.S. now have less than […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[452,21050,19951,7383,827,21049,861,4318],"class_list":["post-36323","post","type-post","status-publish","format-standard","hentry","category-economics","tag-japan","tag-moodys-investors-service","tag-pension-shortfall","tag-public-pensions","tag-united-states","tag-us-public-pensions","tag-wall-street-journal","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36323","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36323"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36323\/revisions"}],"predecessor-version":[{"id":36324,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36323\/revisions\/36324"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}