It’s not supposed to happen. These are defined benefit pension plans. They are supposed to provide retirement security. For thousands, maybe hundreds of thousands of Americans the future of their retirement income is going to change.
They are going to run out of income from the places they counted on the most. Their public employee pensions.
Could this happen?
They don’t want to talk about it, but nearly every state and municipal pension plan is in trouble.
The Los Angeles Times just reported CALPERS, one of the biggest pension plans grew less than 1 percent last year.
They need 7.5 percent just to break even. Where does that exist in today’s world?
The problem is so serious it’s going to disrupt the very essence of how to create a secure retirement income.
For municipal, state and Federal Government plans, there is a simple answer.
Just tax the people to keep on paying everyone.
Because the financial system is so upside down, expect higher taxes on everything to come.
Taxes over the next 20 years are going to confiscate every last freedom Americans have.