Wednesday, March 4, 2009
The Pension Nightmare Is Coming
March 3 (Bloomberg) -- The Chicago Transit Authority retirement plan had a $1.5 billion hole in its stash of assets in 2007. At the height of a four-year bull market, it didn’t have enough cash on hand to pay its retirees through 2013, meaning it was underfunded to the tune of 62 percent.
The CTA, which manages the second-largest public transit system in the U.S., had to hope for a huge contribution from the Illinois state legislature. That wasn’t going to happen.
Read more ....
My Comment: Underfunded pensions .... especially for public employees .... is going to create an even greater crisis than what we are going through today.
But when will this new crisis start? I do not know for sure .... but it probably will be sooner rather than later.