By Frank Keegan, Watchdog.org
Public employees should take their pension money now and run to avoid the risk of getting reduced benefits — or nothing — in the future.
It’s the best deal for them and for taxpayers.
A growing chorus of credible voices including the Government Accountability Office, a Federal Reserve bank and now the Harvard Kennedy School Mossavar-Rahmani Center for Business and Government confirm state and local government finances are “spiraling out of control” and even Draconian reforms make it “more likely” that future benefits will be paid in full.
The just-released Harvard study bluntly states: “Across the United States, state and local government-sponsored pension plans are in trouble. They are dangerously underfunded to the extent that their assets are unable to meet future liabilities without either outsize investment returns or huge cash infusions.”
Guess what? Those outsize investment returns are not going to happen, and there is no cash for huge infusions.