The state of Philadelphia’s pension system is dire and Ron Dubow, the city’s Director of Finance, is sounding the alarm. CNBC reports:
“The health of the municipal pension fund is one of the greatest financial challenges facing our city. One particular challenge is that the number of retirees exceeds the number of current employees paying into the fund, and that is a huge drain on our budget,” said Dubow.
In his interview, Dubow notes that pension payouts have grown from 5 to 16 percent of the city budget, taking away money from providing key services (“it really means less of everything,” he said). This is a crisis hitting cities across the country as bills racked up come due. How American cities dig themselves out of this multi-trillion dollar disaster will be one of the great questions of our time.