Tuesday, March 20, 2012

The Public Pension Crisis


The news gets grimmer and grimmer for public retirees and the lives they expected to enjoy. As the fiscal noose tightens around an increasing number of cities and towns, the unsustainability of the promises to those retirees becomes irrefutable, and the devils' bargain the politicians made with their constituents will further unravel. Once again the Europeans. provide a glimpse into what seems likely to be a difficult set of solutions that no one will like.

In the last 15 years, the private not-for-profit hospital where I work has dramatically cut pension benefits twice, first changing from a defined benefit to defined contribution, and more recently reducing benefits by further by 30%.

Sooner or later, this is what will happen in the public sector.


No comments:

Post a Comment