Academic

FAT-CAT PUBLIC PENSIONS: Angry Populists? Next Target? ?Government pensions, built into law and mo?

By Glenn Reynolds

FAT-CAT PUBLIC PENSIONS: Angry Populists’ Next Target? “Government pensions, built into law and mostly protected from stock market vagaries, are the envy of the private sector. Voters who have lost jobs, taken pay cuts, or watched 401(k)s plummet provide tinder for politicians condemning the excesses of government retirement protections. But voter outrage will be fanned as states and cities face the prospect of cutting services or raising taxes — or both — to cover rising pension costs. . . . The story will only get worse because pensions nationwide are underfunded. Earlier this year the Pew Center on the States calculated a $1 trillion shortfall between the $2.35 trillion states set aside in 2008 for employee retirement benefits and the $3.35 trillion committed. Economists like Biggs say the gap is far bigger because the states use overly optimistic projections on investment returns.”

Full post as published by Instapundit.com on October 01, 2010 (boomark / email).