Friday, December 24, 2010

How underfunded are the public pension plans in your state? The numbers are staggering! (Interactive chart)

The crisis of grossly underfunded public pension plans

How badly underfunded are the public pension plans in your state? The interactive map below will give you an idea and the picture is not a pretty one. This is from a follow-on article from Mish's Global Economic Trend Analysis in which he is specifically examining the looming crisis in New Jersey.

The estimate of the unfunded public pension liability in the United States is an astounding $3 trillion as calculated by the American Enterprise Institute. This represents yet another ticking economic time bomb that will only be addressed when the situation grows dire and the states assumptions for returns on their portfolios prove impossible to achieve (i.e. New Jersey estimates are for an annual 8.25% portfolio return).

If the map below doesn't load or your state is cut off, click on this link.

Remember, as the quote by John Adams at the bottom of The Political Commentator reads,

“There are two ways to conquer and enslave a nation. One is by the sword. The other is by debt.”

1 comment :

  1. This could all be fixed if government was forced to do what government forced private business to do, make it illegal to have an unfunded pension.

    Easy solution, looks like Oregon needs a ballot measure. See that would force them to fix the generous pensions, 100% of pay, (would also stop vote buying). My dads pension was less than 50% of his salary in the private industry. So we could easily move the 42 billion to 21 billion just by changing the pay structure.

    Good luck cause we are all screwed.....