This post explains our disagreement. You’re totally unaware of the size and scope of the pension shortfalls nationwide.
Almost every state and local pension is grossly underfunded. They’ve been meeting obligations by reaching for yield. That yield was attached to huge risk, and those risks have just exploded or are on the edge of exploding right now.
Do a pension bailout.
You can have the pension you were promised when we get universal healthcare, free college, and either UBI or minimum wage equivalent to what it was in the 70s or w/e because wage stagflation. I believe it was something like $20 something in todays dollars.
Also address climate change.
Either that or we take away your pensions and launch you into raw sewage.
I 100% agree they’re working class people and taking away their pensions sucks. I also think the boomer class has been a plague on humanity and are a bunch of selfish assholes and funding their retirement while everyone else continues to suffer also sucks.
As BS said, it’s very low on my list of concerns. If we’re going to start taxing the rich their pensions are like number 25 on the list of things we start funding. If we get to it we get to it, if not fuck you
It seems like you are arguing that pension funds need to be 100% funded at all times. That’s ahh unconventional, and leads to the post office. People have been arguing that pension systems (and ss, Medicare, Medicaid, etc etc) are on the verge of collapse for 40 years. Seems like there might be a pattern there but I’m just an internet dumb guy.
Nope. But assuming an 8% future return means you’re in no danger of meeting your obligations.
And if your target return was 7% or greater at the start of this year you’re now miles underwater.
Marco Rubio itt
Almost had a heart attack this AM when I received this from Lendio:
Your PPP Application Has Been Submitted To A Lender
What does this mean? This means, your PPP application has been sent to one of our lenders who works directly with the SBA for approval - which usually happens within 24-48 hours. Once approved, we will notify you and provide your PPP reservation number .
The good news is that the SBA changed the rules so that Lendio can’t submit people for PPP loan numbers prior to reviewing documents. So, as the above indicates, Lendio is sending apps to lenders for THEM to review and submit. Hopefully that means that our attempts to scuttle our apps will keep them from being submitted to the SBA. Or, if our document removal / EIN changes didn’t do the trick and that info stayed in Lendio’s system and was sent to a lender, there’s a possibility it could actually work and result in a funded loan. Regardless I think I’m less worred about Lendio reserving “my place in line” with an SBA number that has no hope of being funded.
Good luck today.
Today I learned the movie “Bad Education” is based on an actual story. The real life guy, Frank Tassone, with many others, stole $11 million from a Long Island school district. He somehow went to jail for only 4 years.
He still collects a $175,000 annual pension.
Tell me more about how we don’t need any pension reform.
Yeah I strongly suspect most people who are against pension reform just don’t know any of the actual details. They have an aunt or something drawing a teachers pension and think everything is fine.
Meanwhile, in shocking PPP news, the SBA portal is overwhelmed and crashing (opened at 10:30).
Here’s something cool: The state of Ohio’s defined benefit pension plan for teachers (STRS) is completely underfunded. I do not participate in that pension plan - I have a defined contribution plan. Yet, every single paycheck a big chunk of my employer’s contribution on my behalf is made to the state’s defined benefit plan. Instead of the taxpayers overall making up that shortfall, current employees are having their contributions directed away.
This is helpfully laid out every paycheck. I see:
It is infuriating.
Still an error message for me.
Looks like the total Ohio unfunded pension liability is about $24 billion. Which is…not great. About a third of the state’s annual budget.
However, Illinois has an unfunded pension liability of $137 billion, almost 2x the entire state budget. Yikes.
I wouldn’t take reported pension shortfalls as fact without digging a bit. Like, if the pension system is X billion short assuming current assets will grow by 7%+ per year that’s pretty suspect.
If you want to be more infuriated look into the assumptions they are making to get that unfunded pension liability. It’s for sure worse than they are saying it is.
I can’t believe I got ponied on this relatively nerdy point lol. Good job @mosdef. Seriously I got there in 2 fucking minutes.
Yeah. Decent summary here. Moody’s says it is actually $241 billion!
It is a complete disaster:
I worked as a pension actuary for over 10 years, this is probably the thing I know best. Although I work in Canada so some aspects of the US system I dont know much about
Yeah my wild ass guess was 250B for IL without doing any research.
And that’s just one state. There are lots of states that are in a similar spot. All in nationally I’d be shocked if it was less than 5T nationwide.
Interestingly because of the way the funds in the pension system are deployed the giant corporate bailout that RiskyFlush was comparing the pensions bailout too is actually itself a rather large pension bailout. If the market really does crater in a nominal way the pension system is going to be the first domino to fall. The absolute best case scenario (which still fucks the pensioners equally as hard) for pension managers and the states is one where the USD drops in value super hard but gives them a modest nominal bump… because that enables them to claim they kept their promises by maintaining pension payments at the nominal levels they promised with minimal change.
Of course if the currency gets devalued the payments they make will be worth X% less than they would have been in real terms. The pensioners will be getting their teeth kicked in at a similar velocity either way.
That makes sense. My brothers an actuary. Not a bad trade if you can do the math.
That’s some fuckin primo grade suzzer clickbait right there. Just watched that yesterday, really great movie.
Okay now I want to see it