The Economist (October 14)
2010/ 10/ 15 by jd in Global News
American states like California are facing crippling budget deficits. As if things aren’t bad enough, the Economist points to a massive $3 trillion hole: public-sector pensions. States have been underfunding pensions to police, fire fighters and other civil servants. Overly generous benefits and an unrealistic assumption of 8% asset growth have contributed to the staggering pension shortfall. “American states have promised their employees benefits they can’t afford.”
Tags: Assumptions, Benefits, Pensions, Shortfall, States
