brett636
Well-Known Member
I know this is a small town with a small pension that failed, but the conditions that caused it to fail can cause much larger pensions to do the same. I certainly hope nobody here ever has to deal with this, but let this be a warning that relying on someone else to manage your retirement for you is not a good idea.
What is even scarier is that public employee pension funds across this nation are all on the same path this town found its fund in. In California alone the unfunded liabilities of public employee pension funds is $40k per family. If this is allowed to continue expect to see a lot more of what is occuring in this small Alabama town.
http://www.cnbc.com/id/40791768
What is even scarier is that public employee pension funds across this nation are all on the same path this town found its fund in. In California alone the unfunded liabilities of public employee pension funds is $40k per family. If this is allowed to continue expect to see a lot more of what is occuring in this small Alabama town.
http://www.cnbc.com/id/40791768
Alabama Town’s Failed Pension Is a Warning
Published: Thursday, 23 Dec 2010 | 4:39 AM ET
By: Michael Cooper and Mary Williams Walsh
The New York Times
This struggling small city on the outskirts of Mobile was warned for years that if it did nothing, its pension fund would run out of money by 2009. Right on schedule, its fund ran dry.
Then Prichard did something that pension experts say they have never seen before: it stopped sending monthly pension checks to its 150 retired workers, breaking a state law requiring it to pay its promised retirement benefits in full.