Unfunded Government Pensions for Federal, State and Local levels is over $100,000,000,000,000. That’s not a typo. That is One-Hundred Trillion dollars. It is over 6 times more than the current debt. That is the amount of money “owed” to government employees for their 100% salary pensions. Worse still, every single cent of that $100 Trillion owed is unfunded. It’s not there. There is no big bank account waiting for them.
Ignoring all of the other problems the Government has shouldered the American people with, this alone is enough to crush the economy and the country. The only way we could DREAM of paying all of this is to basically set a confiscatory tax policy akin to Soviet Russia. I.E. 90% of what you “Earn” goes to the government. But don’t worry, some states are well on their way. California has an effective tax rate of over 50%, and New York is not far behind.
The rug needs to be pulled out on these immoral pensions now, or the consequences will be much, much worse even a few years from now.
These pensions are payable over many years. But it’s just an estimate. The pensions aren’t set based off of how much they’ve saved over the years. In fact, the government employees have spent very, very little on their own pension funds. The pension they get every year in retirement is equal to their last year’s salary. And if they live for 1,000 more years after retiring, they will earn the same salary per year, PLUS cost of living adjustments.
The Unfunded Liability estimates estimate that the government workers will only live as long as the life expectancy. If a person retires at 60, and lives to 100 when the expectancy is 80, they’ve cost the pension system double what was estimated. Add onto that the advances of the health care system (Obamacare aside), and the average life expectancy is growing every day.
Add onto THAT the growing number of government employees, and you can see the problem is a snowball rolling downhill.
Anyway you look at it, there is no pot of gold waiting for the pensioners to retire. The money to pay for their pensions will have to come out of the federal, state, and local pockets to pay for it. All of that money is on top of the money already being spent. And as it stands, for every dollar we are spending, we are borrowing $0.46. Adding on trillions of more spending dollars will destroy that ratio even further.
That is unless something is done to fix the problem.