The American Empire in a Changing World


Friday, September 21, 2012

Charles Biderman: "Local Governments & States Hiding Entitlement Funding Gap Data''

From Trim Tabs

''Today’s New York Times reported, “The Chicago Teachers’ Pension Fund has about $10 billion in assets, but is paying out more than $1 billion in benefits a year, much more than it has been taking in. That has forced it to sell investments, worth hundreds of millions of dollars a year, to pay retired teachers. Experts say the fund could collapse within a few years unless something is done.”

A $1 billion shortfall. And that is just one group of public employees in one large city. That begs the question of how big is this problem for the entire United States? That size of the funding gap is not available anywhere. No one knows. But obviously the annual funding gap has to be about $500 billion just from state and local governments alone. And I would not be surprised if the total annual funding gap for all entitlements including the Federal governments was at least a trillion dollars.''


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