As a teacher in California I am part of the State Teachers Retirement System. I was not happy to to read today that as many as 85% of pensions will go bust within the next 30 years. In a report by Bridgeport Associates, pensions are going to earn 4% less each year over the foreseeable future. Thus they will not make enough to pay out all the obligations they have. I like having my pension, but considering that it might not be there when I retire, I wish something else had been done. I think most pensions will end up in bankruptcy and renegotiated. How can I think that will happen? Because that is exactly what is happening in Detroit as I write. If the money is not there, then the promised payout will not happen. Plain and simple.
What do you think?
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