Inflation and retirement

NewHope33
Mon, 24 Oct 2011 18:25:53 +0000

No, they can’t declare bankruptcy. What they CAN do however is defer contributions to pension plans, and/or borrow money from those plans to cover annual budget shortfalls. No one really knows how big the contribution deficit is. In Connecticut, $25 Billion seems to be a popular estimate of the state’s underfunding. (What was Everett Dirksen’s quote? “A billion here, a billion there, and pretty soon you’re talking real money.”)