July 18, 2012
Nationwide Unfunded Pension Liability Now up to $4.6 Trillion
About a month ago, I presented a comparison of estimates for the nation's public-sector pension problem. While none of the results were encouraging, there was huge variation in the degree of frightfulness — the difference mainly being in the way in which they calculate liabilities.
One of the economists, Andrew Biggs, of the American Enterprise Institute, has updated his findings for State Budget Solutions, bringing the highest unfunded liability estimate currently on the table to $4.6 trillion.
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Justin,
No need to worry.
Just call National "Education" Association RI Executive Director, Bob Walsh, and he will explain to you that there is no problem, nothing to worry about.
We just need to use the "Walshian Assumptions" of fairy-tale returns and everything will be fine ...until later when Bob ain't around to deal with the mess on the day of reckoning.
In fact, Andrew Morse will happily, obediantly and compliantly run his famous Pension Simulation using the "Walshian Assumptions" to "prove" that everything is fine ...as long as you are as gullible as Andrew to buy into Walsh's fairy-tale assumptions.
So stop worrying and rest easy. Just have Andrew pour you some of Bob's Kool-Aid and you will be fine.
And if that doesn't do the trick, you can always buy into the Bob Walsh fantasy of "monetizing" the lottery to fund his flock's pension.
Posted by: Leo at July 24, 2012 9:39 PM