The Denver Post reports that the fund has $23 billion in unfunded liability. That’s money it owes to current and future retirees over the next 30 years but does not have in its account today […]Stapleton estimated that Friday’s vote means the pension fund’s unfunded liability will increase by about $6 billion to $29 billion.
There are several pieces of bad news contained in this story: the new assumed rate of return is still very aggressive, and the pension fund now has unfunded liabilities of almost $30 billion… if everything goes right! Bottom line for Colorado teachers and others covered by this system: your pensions are NOT SAFE.Your union leaders and state officials will try to reassure you, but their interests are not the same as yours and, like their counterparts all over the country, they are ready to sacrifice you on the altar of their own ambition. They want you to pipe down and shut up; by the time the inescapable problems erupt, they will be long gone. You should begin, immediately, to save aggressively so that your private savings can help offset any shortfalls.[Money vortex image courtesy of Shutterstock]