Public pensions nationwide are crumbling…
- legal loopholes are widening… and
- you could be left with nothing.
If you are currently retired, the coming American Pension Crisis could mean
- the elimination of cost-of-living adjustments
--- which reduces your lifetime benefits up to 25%
- higher healthcare premiums
--- that could cost you hundreds more every month...
- or even cuts to your base pension check.
- if things are bad enough, you may suffer a ravaging "clawback"
--- where the government repossesses enormous lump sums of YOUR cash,
--- and still cuts your monthly check, just to throw salt in the wound.
--- (Yes, this is happening right now, in our country)
If you are still working
- pensions are going the way of Social Security
- your contributions are likely funding current retirees' benefits, not your own.
--- If you're a teacher in Michigan, e.g. only 10% of your contributions are being invested for you
--- The rest is going to pay for your predecessors.
In fact, it doesn't matter where you live or what type of work you've done for the government
- Pension cuts, even for currently retired public employees, are no longer a stretch of the imagination.
- A "perfect storm" is rolling across the country, thanks to:
--- near-zero interest rates that crippled every pension's growth
--- risky investments that cost millions in fees and millions more in losses
--- negligent under-funding &
--- outrageous benefit packages that skyrocketed liabilities
--- Not to mention what critics call Enron-style accounting that's hidden ALL of this from the public for decades
Just consider this:
- In 2001, the vast majority of pensions were fully-funded
--- Generally speaking, "well-funded" means above 80%.
--- 50% funding or below is considered the "crisis point"
--- It's extremely difficult to come back from 50% or less.
- in 2017, the nationwide funding level is just 35%
--- with some as low as 22.8% (look out, Connecticut).
US city & state funds are missing $5.6 trillion in promised pension checks & benefits
- that's 5.6 million millions
- because governments have failed their public servants.
- They've failed to:
--- make responsible pension promises
--- make contributions
--- invest your money safely
--- use rational accounting methods to plan for the future, and
--- so much more.
- To wrap your mind around that number, just imagine:
--- every American being required to write a personal check for $17,427.
--- It's outrageous.
The government hasn't been held accountable for so long, systems like:
- Illinois Universities,
- Missouri Department of Transportation and Highway Patrol,
- Connecticut State Employees Retirement System,
- Texas Law Enforcement and Custodial Officers Service,
- Kentucky Employees Retirement System
--- are all projected to run out of assets by 2021…
--- a few as soon as 2018, according to recent findings
Pension risks state map
As you can see from this map:
- GREEN represents the least endangered states
- YELLOW is moderately risky
- RED is the riskiest…
- Our entire country is teetering on the edge of full blown crisis