Public Pension Funds Face $2 Trillion Shortfall, Moodys Warns

Public Pension Funds Face $2 Trillion Shortfall, Moodys Warns (ZeroHedge, Sep 26, 2014):

“Despite the robust investment returns since 2004, annual growth in unfunded pension liabilities has outstripped these returns,” Moody’s warns in its latest report on the state of public pension systems. As Bloomberg reports, the 25 biggest systems by assets averaged a 7.45% return from 2004 to 2013, but liabilities tripled over the same period leaving them facing a $2 trillion shortfall as investment returns can’t keep up with ballooning obligations. The top 25 funds account for 40% of the entire US public pension system with Illinois, Kentucky, Connecticut, and Louisiana at the top of the ‘most underfunded’ list.

1 thought on “Public Pension Funds Face $2 Trillion Shortfall, Moodys Warns”

  1. This is your corrupt government working………..
    against you. This is happening all over America. It isn’t just the state pension plans, it is county and city.

    I have watched the funds that showed such health a few years ago vanish, replaced by the gloomy aspect of truth. Laws have been passed by some states denying the accountants the abilities to cheat, CA is one.

    Here in CA, they were doing the old Enron trick of moving debt, hiding it in other accounts. This governor (whom I despise) did force the cities and counties to put the debts back on the main spreadsheet, no longer allowed to hide them from the people.

    As a result, many city and county workers are facing a dire retirement. Most state, county and city workers are not allowed to draw Social Security (thanks, Ronald Reagan) because they supposedly had healthy pension funds to draw upon. So much for that…..what happens now?


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