Readers say state worker entitlement promises have been too generous and that concessions need to be made
Interesting that municipalities across the country continue to file for bankruptcy protection after over-promising to their retirees. This is despite taxing our middle class to death. Middle income in the US is not keeping pace with growth in Canada, Britain and Sweden. The WHOLE story would also include admitting that entitlement promises have been too generous and that concessions need to be made to taxpayers going forward.
There have been at least 54 Chapter 9 municipal bankruptcy filings just since 2006, with the largest being Detroit, followed by Stockton, San Bernardino, and Jefferson County. Central Falls, RI and Westfall, PA are some others. Harrisburg, PA filed for bankruptcy in 2011 but the judge denied their petition. NYC based hedge fund Bridgewater did a study suggesting that roughly 85% of public pensions will go bankrupt within three decades. US public pensions have $3 trillion of assets with which they are expected to make $10 trillion of retirement payments over the next 30 yrs. This implies a required annual return of roughly 9%, vs. the current 30 year US Treasury yield of 3.44%
