Pension deficit at $34 Billion

Started Nov 17, 2012 | Discussions thread
Bill Randall
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Re: Pension deficit at $34 Billion
In reply to Lee Jay, Nov 19, 2012

ljfinger wrote:

Bill Randall wrote:

ljfinger wrote:

Bill Randall wrote:

The retirees have to be paid in cash (check). Asset deficit means you do not have the assets (cash) to cover the expense of the retirees. Where does the cash come from?

No, that's not what that means. It means your current assets do not match their total obligations. That's okay in the short run but it means you'll eventually run out of money if you can't get the situation to reverse before that happens.

Total obligations as in current AND future? Alright, that makes sense. Thanks for correcting me.

Now, if the agency finds it cannot meet it's current obligations then it will have to come from the government tax payer. Is that right?

Or they have to reduce their payments.

From the link: "The agency has now run deficits for 10 straight years." It seems to me a responsible agency would not have let this go on for 10 years. It is not going to surprise too many if companies continue to go out of business with the economy we are going to have for several more years. So this deficit will increase. And it is possible the tax payer will end up getting the short end of the stick again. Wait, I forgot the alternative that you indicated. We could screw the retirees who planed retirement with $X and now will get $X minus $Y.

I get a little upset when I see numbers like $ 34 Billion, and words like asset deficit. I just don't understand how people can look at this with such an indifferent attitude. Anyway, I want to thank you again.

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