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Feds to bail out state pension funds?

Discussion in 'The Okie Corral' started by Mr981, Sep 30, 2012.

  1. Mr981

    Mr981

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  2. aircarver

    aircarver Descent Terminated Silver Member

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    With what ? ....:steamed:

    .
     

  3. jpa

    jpa CLM

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    So if Nevada's pension is completely funded and solvent (it is), can we get a bonus check just because? Otherwise I don't see this as being fair to the states that actually manage their money responsibly instead of writing an IOU to the pension and a check to some BS program.
     
  4. m2hmghb

    m2hmghb

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    In NJ the emloyees of the public sector met their contributions, but the state and local governments usually didn't. I find it ironic how the state blames the employees for not putting enough in when they constantly steal from it or just plain ignore it.
     
  5. JohnBT

    JohnBT NRA Benefactor

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  6. TheExplorer

    TheExplorer

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    You aint seen nothing yet. Wait till all the baby boomers, who are at the top of their pay range, retire. Full salary and medical benefits are really going to hurt the system.
     
  7. Flying-Dutchman

    Flying-Dutchman

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    Easy, just press a couple of buttons. The Fed does not even need a printing press anymore.

    They will get their pensions. It may pay their cell phone bill.
     
  8. mgs

    mgs Always Carrying Millennium Member

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    That would be typical......another payoff with taxpayer cash!
     
  9. Mr981

    Mr981

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    Romney should ask him if he would support this for IL or any other state straight up , yes or no--no equivocation.
     
  10. Wolfgang

    Wolfgang Millennium Member

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    VA "VRS" is so funded the Guvernator pulled money out to balance the state budget....he now claims a balanced budget, but underfunded retirement system.

    Maybe a bailout with "printed dollars" will bail it out.
     
  11. turretg

    turretg

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    Incremental Marxism.
     
  12. RonS

    RonS Millennium Member

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  13. wjv

    wjv Zip It Stan Lee.. . .

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    This really neat stuff that they create from thin air. It's called "Back to the Future Money - IV". . .
     
    Last edited: Oct 1, 2012
  14. jpa

    jpa CLM

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    They keep using the full cost of all liabilities in determining the percentage of funding. If the state promises 75% of my salary 30 years from now, they're not going to take 75% of my current salary and put it in a bank account. They take 11.5% of my salary from me and match it to put 23% of my salary in investments. Assuming a 7% rate of return on that money for the next 30 years, one year's worth of contributions will be equal to 1.5x the total salary or 2 years worth of benefits. Adding in compounding returns over 30 years and continued contributions at the same rate will yield 31 years worth of payments at 75% of my salary after retirement.

    How is that not solvent again?
     
    Last edited: Oct 4, 2012
  15. certifiedfunds

    certifiedfunds Tewwowist

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    It's all taxpayer money. Doesn't really matter what bucket it comes from. Why should the pension remain fully funded with tax dollars when the rest of the budget is bleeding?
     
  16. ugly8604

    ugly8604

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    I love how people who have no idea what they're talking about keep screaming, "unfunded liability." Guess what folks,if suddenly at this very moment every person in the nation who was eligible to retire did so, we may be in a bind. Pensions are pay as you go, it's not the end of the world if they aren't fully funded at the moment.
     
  17. Dennis in MA

    Dennis in MA Get off my lawn

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    Doubtful that they'd ever bail it out. If they haven't thrown a lifeline to CA yet, they won't throw any lifelines. There is PLENTY a state can do to avoid problems. RI, amongst others, has made radical changes to it's pension system to stay afloat.

    There are certain things Uncle won't do. Bail out a state is one of them.
     
  18. devildog2067

    devildog2067

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    This part:
     
  19. certifiedfunds

    certifiedfunds Tewwowist

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  20. Dennis in MA

    Dennis in MA Get off my lawn

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    Pension funds don't invest in risk-free investments. They have a "prudent man" diversified portfolio. 7% long-term (30 years) is NOT unreasonable.