Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • How We Are Different
  • Debbie Young
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • Your Survival Guy
  • The Great Reset
  • The Swiss Way
  • My Rifles
  • Dividends and Compounding
  • Your Security
  • Dick Young
  • Key West
  • Paris
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Bank Credit & Money
  • Your Survival Guy’s Super States
  • NNT & Cholesterol
  • Your Health
  • Ron Paul
  • US Treasury Yield Curve: My Favorite Investor Tool
  • Anti-Gun Control
  • Anti-Digital Currency
  • World Gold Mine Production

As Pension Debt Crests $1.5 Trillion, States are Headed Toward Crisis

April 7, 2017 By E.J. Smith - Your Survival Guy

The Tax Foundation has created a map of each state’s pension funding situation. It’s not pretty. If you live in South Dakota, Oregon or Wisconsin, your state is in great shape. All three have funded their pensions over 100%. But if you rely on a state pension in Illinois or Kentucky, it could get rocky. Both states’ pensions are funded at only 41%. That’s the worst in the country.

tax foundation state pensions map

The answer could be transitioning state employees into defined contribution plans rather than relying on the defined benefit plans that have been the norm for public pensions through history. Analysts Morgan Scarboro and Jared Walczak write for the Tax Foundation:

According to preliminary 2015 data, state and local pension debt now exceeds a combined $1.5 trillion. Strong returns on investment (averaging 17 percent in 2014) have helped to reduce the debt, but the message is still clear: many states are facing a pension crisis.

States vary in the way they structure their pension systems, but some states are transitioning new employees into defined contribution or hybrid plans rather than more traditional, and more costly, defined benefit plans. Defined contribution plans give employees control of their own investment account, while defined benefit plans promise employees a lifetime annuity. This move toward defined contribution plans can be a step toward fiscally sound pension plans for states; however, it doesn’t address existing pension debt.

Read more here.

Related Posts

  • Pension Fraud
  • "The Debt Crisis Is Solved if You Ignore Most of the Debt"
  • National Debt Topped $17 Trillion Last Month
  • Author
  • Recent Posts
E.J. Smith - Your Survival Guy
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998.

E.J. has trained at Sig Sauer Academy in Epping, NH, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention.

E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris.

Please get in touch with E.J. at ejsmith@yoursurvivalguy.com

Click here to sign up for my free monthly Survive & Thrive letter.
Latest posts by E.J. Smith - Your Survival Guy (see all)
  • Your Survival Guy Felt Like a U.N. Worker in Rome - May 31, 2023
  • The Future of the American City is This… - May 30, 2023
  • Your Survival Guy in Rome 30-Years A.B. (After Babson) - May 26, 2023

Dick Young’s Must Reads

  • BEYOND RUSSIA: America Strengthens India Ties to Counter China
  • U.S. Survival AR-7
  • DIGITAL ID: You Are More than a Soulless Digital Identity
  • Washington Is the Systemic Risk
  • America’s Number One Patriot: Naples Florida’s Alfie Oakes
  • Can Ginger Combat Heart Disease and Improve Circulation?
  • Americans Fleeing High Tax States for Growth Corridors
  • The Breakfast of Champions
  • How Can You Maximize Natural Immunity to Viruses?
  • Globalism Has Made America Dependent on Foreign Countries

Disclosure

RSS Youngresearch.com

  • Your Survival Guy Felt Like a U.N. Worker in Rome
  • Happy Memorial Day!
  • Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • Money Market Assets Hit Record High: $5.4 Trillion
  • A Three-Week International Research Trip to Paris via Rome
  • The Mania in AI Stocks Has Arrived
  • What Does That Have to Do with Your Dividend?
  • The Wisdom of Sam Zell
  • How Activists Have Weaponized Corporate Boards
  • Is an Investment Property Disaster Looming?

RSS Yoursurvivalguy.com

  • Your Survival Guy Felt Like a U.N. Worker in Rome
  • Social Security: Declining Italy Needs a Bambino Boom
  • ATTACK ON THE IVAN KHURS: Unmanned Vessels Changing Naval Warfare
  • The Future of the American City is This…
  • Happy Memorial Day: Your Survival Guy: Proud To Be an American
  • Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • Insurers Now Fleeing the Net Zero Insurance Alliance
  • A Three-Week International Research Trip to Paris via Rome
  • Will Biden Repeat Obama with US Debt Downgrade?
  • What Does That Have to Do with Your Dividend?

The Party Is Going Off the Rails

Your Survival Guy Felt Like a U.N. Worker in Rome

Will Humanity Be Forced to Destroy AI?

The Overprescription of Statins for Heart Disease

Why Is Carcinogenic Monkey Virus DNA in COVID Vaccines?

Google Knows Where You Are and What You’re Thinking

Copyright © 2023 | Terms & Conditions | About Us | Dick Young | Archives