Just what Kentucky needs. More bad news.
This time, it’s coming from someone who knows pensions.
You’ll love what she has to say:
Alicia H. Munnell’s new book, “State and Local Pensions: What Now?”, is essential reading for anyone who wants to move beyond the conventional wisdom and gain a real understanding of public-employee pensions. Much of that conventional wisdom, it turns out, is wrong.
Munnell is director of the Center for Retirement Research at Boston College, where she also is the Peter F. Drucker professor of management sciences at the college’s Carroll School of Management, so she is one of the foremost experts on the subject.
Other states, including Illinois, Kentucky, Louisiana, New Jersey and Pennsylvania, have failed to make required contributions or used inaccurate assumptions so that their contribution requirements are not meaningful.
[S]he finds that the differences between states where the plans are in good shape and those where they are not is simply whether or not the state has had a culture of fiscal discipline. Those states with poorly funded plans also have considerable non-pension debt and lack sound fiscal controls.
Overall, Munnell’s main message is probably that, in her words, we should “dispense with some of the hysteria” over public pensions. The issues confronting state and local pensions, while not trivial, are manageable. Well, maybe not in every case. In Illinois and possibly Kentucky, she says, “they should be hysterical.”
Click here to read the entire thing.
And ask yourself why we’re the only outlet talking about this disaster every day. Maybe reach out to your elected officials to demand immediate action.