Pension Myths Keep Us From Making Badly Needed Reforms | IBD
As 2014 brings in new struggles for cities and states to pay for employee legacy costs while still funding the essential functions of government, policymakers on both sides of the aisle are reconsidering how to provide a secure retirement for state and municipal employees in a responsible manner.
Reports estimate total unfunded pension liabilities exceed $4 trillion across the 50 states, and Detroit’s municipal bankruptcy, along with dozens more over the last half decade, are just the tip of the iceberg.
Many thoughtful criticisms have come from reform discussions, but also many attacks built on misconceptions, “straw man” arguments and blatant myths. Here are a few facts about reform: