Report: The Plot Against Pensions (2013). Anyone that has been following the story of Detroit’s emergency manager and the ongoing bankruptcy will find this report interesting. The author, David Sirota, evaluates the general state of the national debate over public pensions and makes the case that the impending collapse of pension programs is largely a perception manufactured by those that have an interest in seeing their elimination.
Mr. Sirota notes that states and cities have been failing to fully fund their annual pension obligations for years. Instead, they have used funds that were supposed to go to pensions to finance expensive tax cuts and corporate subsidies. A key finding of the report is that public pensions face a 30-year shortfall of $1.38 trillion, or $46 billion on an annual basis. However, this is dwarfed by the $80 billion a year states and cities spend on corporate subsidies.
The report highlights some of the states – Kentucky, Arizona, Rhode Island, and Kansas among others – where this debate is being played out.
It is critical that SavvyReaders understand what is happening with regards to public pensions and appreciate there is likely to be an impact to the way in which we need to prepare for retirement.
The Plot Against Pensions report is available in .pdf format.
Mobile Application: Bloomberg TV+. As I am getting ready for work, attending to this blog (updating content, checking comments, deleting spam, etc.) and enjoying my morning cup of coffee, my preferred “background noise” source is Bloomberg Television.
This 24-hour global business & financial news network app offers their live TV feed, featured stories, and important stories from the last 24 hours. Moreover, users get exclusive interviews with influential people in business, finance and investment; and access to Bloomberg shows. This source serves as a good way to stay abreast of what factors – the who, what, and when – are shaping the economy and are likely to impact your retirement portfolio.
Unfortunately, right now the app is limited to the Apple iPad and Apple TV, my preferred delivery method.
Find out more at Bloomberg Mobile TV.