Illinois & California Ignore Massively Unfunded Pensions, But Pennsylvania & Michigan Take Action | WHAT REALLY HAPPENED


Illinois & California Ignore Massively Unfunded Pensions, But Pennsylvania & Michigan Take Action

The media likes to focus on political scandals and negative news, but it’s also important to commend elected officials when they do the right thing, especially when it involves standing up to the most influential and well-funded special interest in modern American politics: government sector unions.

While the near $20 trillion federal debt gets more attention, among the most pressing challenges facing government finances in the U.S. are exorbitant and growing unfunded state and local pension liabilities, now pegged at $5 trillion when assuming realistic rates of return.

The bad news is that in the states with some of the worst unfunded pension liabilities – such as California, Illinois, and New York – the political class is currently neglecting this growing crisis, and there appears to be no will among the powers that be in Sacramento, Springfield, and Albany to implement the reforms necessary to rectify the matter. The good news is that two politically and economically important states, Pennsylvania & Michigan, recently took meaningful steps to address their unfunded liabilities.

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