10 Worst-Off State Pension Funds
Fiscal conservatives have seized upon the Kansas Public Employees Retirement System as a poster child for budget-busting benefits.
Officially, the KPERS unfunded liability stands at $8.3 billion, but "the real deficit" according to the Kansas Policy Institute, a conservative think tank, is "more likely to be at least $14 billion" and possibly as high as $20 billion. The sweep of estimates is because the official statistic is based on assets earning an 8% annual return over the next 30 years. Critics say that the investment return should be set much lower and, for example, a 6% investment return would require an additional $3.3 billion in state contributions over 10 years.
Among the reforms being considered is to put new employees and nonvested current employees into a 401(k)-style retirement plan.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV