*** Deleted By Moderator ***
On the Backs of Retirees
How the hell did our states get SO far behind the enormous eight-ball of unfunded pension fund liabilities?
It is now estimated that states have an unfunded liability of nearly $3 TRILLION dollars!
TRILLION! Unbelievable.
But I know exactly how it happened...
Uninformed politicians and financial "experts" made unrealistic projections about investment earnings and life expectancy.
The current economic downturn, with no end in sight, continues to stunt states' revenue outlooks.
And it's not getting any better.
So, where are many states turning in order to start bailing out their pensionliabilities...retirees!
Several states have already stripped current retirees of thecost-of-living increases they were promised, with others ready to followtheir lead. Other states are considering cutting back the promisedpensions to retired employees. Still others are replacing guaranteedpension plans with 401(k)-type accounts.
Here's where I stand on this issue...
Many retirees have worked VERY hard during their working lives.
Should some of them been offered such lofty retirement benefits?
NO!!
Some benefits offered were out of control from the beginning!
For example, a California lifeguard getting 90% of their annual incomeof $200,000 for LIFE--give me a break!
BUT, should the benefits PROMISED, EARNED and DEPENDED ON by retirees benegatively impactedbecause free-wheeling, gun-slinging politicians continue to spend theirstates down the river...NO!
It is simply morally wrong to change the rules on these retirees this latein the game. How will an 80-year old retiree adjust this late in life tohaving their pension cut or benefits reduced?
Leave the retirees' pension benefits alone!
A much more sensible and fair solution is to immediately change thepension benefits given to NEW employees.
That's my opinion anyway...what's yours?
Ken and Daria Dolan have hosted their own national radio program for 22 years, anchored their own television shows on CNN, authored six books on money matters, served as money contributors on CBS This Morning and have now launched a comprehensive web site and free e-letter at Dolans.com.
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