California may be boasting a $1.2 billion budget surplus this year, but it and other states still face the growing problem of what to do about pensions for state workers, according to The Economist.
“California still has a mammoth long-term pension gap. If it used the same pension accounting standards as private companies must, its total debts would be a terrifying $1 trillion.” With people getting older, the state is facing the need to pay more money to an ever growing number of retirees, without a matching increase in workers and funds.
California isn’t the only state facing these problems. “California is far from alone In Illinois [pensions] are only 40 percent funded; in New Jersey, 53 percent.” With the ever-growing cost of retirement, and with more and more people retiring, “the eventual result will be a huge rise in taxes when the pension funds run out of money. The burden will fall on private-sector employees, who do not qualify for such a gilded retirement. They will not be happy.”
Freeman Stevenson is a Snow College grad and is the DeseretNews.com opinion intern. Reach me at fstevenson@deseretdigital or @freemandesnews
- In our opinion: Legislators need to better...
- My view: The solution to Utah's water problems
- Dan Liljenquist: What we learned from the...
- My view: Is the Division of Water Resources...
- My view: Get insurance out of health care
- Last year's Utah Compromise is a model in...
- My view: hippies, 2 Hell's Angels, one...
- Richard Davis: Do presidents have to be...
- Richard Davis: Do presidents have to be... 55
- My view: Get insurance out of health care 47
- My view: Obama's veto won't save Obamacare 34
- In our opinion: Attempting to... 32
- My view: 'Death with dignity' and... 27
- In our opinion: Concerned voters a good... 23
- Trump and Sanders 22
- John Hoffmire: Electric cars and the... 20