Moody’s has analyzed 56 U.S. public pension plans and found them to be in deep, deep trouble. The Financial Times:
In some of the worst-funded schemes, including the teacher pension plans in Illinois and Kentucky, the funding gap has grown to almost eight times what current teachers are paid, according to Moody’s. […]The analysis looked at best- and worst-case scenarios for the year to July 2016. It found that if returns went down by 10 per cent on average this year, the collective pension deficit would grow 59 per cent, to $952bn.In the most optimistic scenario, where average returns totalled 5 per cent, the collective funding gap would still widen by more than $200bn.
Even as the GOP is imploding, the problems of blue model governance that Democrats have hitched their wagons to are stubbornly persisting—and, indeed, are getting much worse. “[Public pension plan] deficits are going from abysmal to worse. We are witnessing a slow-motion car crash,” an analyst told the FT. The numbers just don’t add up, and the day of reckoning draws ever nearer.