Reality is reality and that means that government employee pensions all across the country are going to be cut sooner or later.
(From The New York Post)
So, what’s the state of the money set aside for public-sector pensions? At the state level, good. New York’s two major pension funds are about 95 percent funded.
At the city level, not so good. Gotham owes $56.2 billion in unfunded debt to pensioners — money it has promised future retirees but not set aside. Most of this is for teachers: the city owes $71.6 billion to current and future retired teachers, but has put aside only $48.9 billion for this purpose, leaving a $22.7 billion shortfall.
Overall, Gotham’s pension funds are about 71 percent funded. As cities go, this isn’t bad: Chicago’s pensions are only 21 percent funded.
Consider, though: New York may be at the tail end of a historic boom.