Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Mainstream Politics and Economics -- Ignore unavailable to you. Want to Upgrade?

To: Paul Smith who wrote (38343)	2/2/2013 2:32:43 PM
From: research1234	Read Replies (1) \| Respond to of 85487

There is a very wide range of estimates for pension liabilities. Assumptions must be made regarding when retirements will happen, how long people will live, and what interest discount rate to use. Agree that pols will lean towards rosy assumptions, but it is also easy to pick worst case unrealistic assumptions if the goal is to foment doom and gloom. If the discussion is about Social Security liabilities, a PV analysis is less than worthless. If we are talking about state and local pension liabilities, there is no question that lots of jurisdictions are in real trouble, and over the next 30 years we will see massive public pension plan changes, including big benefit cuts when bankruptcy becomes the only option. I would like to believe that the recent Rhode Island changes can be a model that is followed, but I suspect that there will be plenty of can kicking leading to bankruptcy too.