So I don't even have a pension... Why should I care?
Because I have a close family of about 30 relatives, kids and their kids, who are depending on promises from their pension funds. I care, and wonder about their future. Many mid forties to mid fifties, and signed on when they began their careers.
Living in Illinois, there is a considerable amount of angst about public pensions which are underfunded by more than $100B.
I asked some of my sons about the safety of their own private pension funds about two years ago, and was told that they had checked and their pensions were safe, and if anything, overfunded. Today, not so much. A matter of projections and expectations that changed. Boards of directors changing the investment vehicles because of long term worries. One of the plans that was quoted as 100% funded, is now less than 80%.
Some of the local government funds here in Illinois are projecting to pay current obligations out of current receipts as soon as within four years. Some of my own (younger) neighbors seem to believe that their pension funds are guaranteed by something like the FDIC.... (full faith and trust)... and don't understand the PBGC structure.
While some funds seem to be addressing this, there seem to be many that have faith in a long term solution. Perhaps, but from whence?
Something struck me about a recent article about some IL plans, where total pension monies that were paid in by the pensioneers were completely paid out within 26 months of their retirement.
Not a question about whether or not you'll rely on your pension for retirement, but what can be done to protect what has been promised? Not just for your own retirement, but the effect of problems like those experienced by Illinois... on the economy as a whole?
Or maybe you don't see a problem.
Because I have a close family of about 30 relatives, kids and their kids, who are depending on promises from their pension funds. I care, and wonder about their future. Many mid forties to mid fifties, and signed on when they began their careers.
Living in Illinois, there is a considerable amount of angst about public pensions which are underfunded by more than $100B.
I asked some of my sons about the safety of their own private pension funds about two years ago, and was told that they had checked and their pensions were safe, and if anything, overfunded. Today, not so much. A matter of projections and expectations that changed. Boards of directors changing the investment vehicles because of long term worries. One of the plans that was quoted as 100% funded, is now less than 80%.
Some of the local government funds here in Illinois are projecting to pay current obligations out of current receipts as soon as within four years. Some of my own (younger) neighbors seem to believe that their pension funds are guaranteed by something like the FDIC.... (full faith and trust)... and don't understand the PBGC structure.
While some funds seem to be addressing this, there seem to be many that have faith in a long term solution. Perhaps, but from whence?
Something struck me about a recent article about some IL plans, where total pension monies that were paid in by the pensioneers were completely paid out within 26 months of their retirement.
Not a question about whether or not you'll rely on your pension for retirement, but what can be done to protect what has been promised? Not just for your own retirement, but the effect of problems like those experienced by Illinois... on the economy as a whole?
Or maybe you don't see a problem.