The Joy Of Public Service
One of the reasons people put up with the aggravation of working in the public sector for less money than the private sector is the promise of a decent retirement package. They should have known better.
David Cho of the Washington Post writes that Growing deficits threaten pensions
The funds that pay pension and health benefits to police officers, teachers and millions of other public employees across the country are facing a shortfall that could soon run into trillions of dollars.
But the accounting techniques used by state and local governments to balance their pension books disguise the extent of the crisis facing these retirees and the taxpayers who may ultimately be called on to pay the freight, according to a growing number of leading financial analysts.
The politicians don’t want to tell the public the real cost of their government, so they create fantasies about various funds. Well, reality is about to pay a very unpleasant visit. Public employee pension funds are a very important investor, and if they run into trouble, it will be extremely nasty for the economy.
