Daily Revolt

December 18, 2007

States Face $2.73 Trillion Bill for Retirees: Study

Entitlement programs (such as Medicare and Social Security) in the coming new year will absolutely destroy the economy. And no one is really addressing the issue, including Hillary, Obama, or McCain:
Retirement benefits for U.S. public employees could cost states some $2.73 trillion over the next three decades, according to a report released on Tuesday by the Pew Charitable Trusts.

While states have saved about $2 trillion to meet these obligations, their promises to retirees are still underfunded by about $731 billion, the study showed.

The study, which evaluated all 50 states, also found wide variations among state practices, with only a third of states consistently setting aside the amount their actuaries tell them is necessary to cover the cost of long-term benefits.

[...]The study also found that the states have set aside enough to cover about 85 percent of long-term pension costs, but that they have only saved 3 percent of the funds necessary to cover promises made to retirees about health care and other benefits.

Previous Articles
- Pat Buchanan Book Declares 'End of America'
- $13 Trillion Deficit Looms for Social Security

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