A Thought on Pensions
September 27, 2010 Leave a comment
I like the following the quotation from a good study on state and local government salaries and pensions.
Note that the pension problem is not really “underfunding,” but the “overpromising” of benefits that the states cannot afford.
It is true that the problem is not that we didn’t tax our people enough, or that the stock market fell, but that city management and commissioners approved pensions (and other benefits) that were and are way too high.
The problem is to correct the original sin–over promising.