The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/the-financial-stability-of-a-pension-plan-is-30870319.aspx

Subject:  Re: Buy years or buy stocks Date:  9/14/2013  8:45 AM
Author:  Rayvt Number:  72818 of 78166

The financial stability of a pension plan is always a concern and as I questioned earlier, the OP and other Colorado pension recipients should be well aware of its viability and what legislators can and can't do to it. One protection is that the state can't declare bankruptcy to get out of paying benefits. ...
However, pension benefits are protected in the constitution (I believe only 9 states do this).


Let me highlight the crucial part of what I said earlier: All the laws & state constitutional requirements mean nothing if/when the state has no money.

I recall reading a couple of years ago that California paid income tax refunds with VOUCHERS rather than cash. They didn't declare bankrupcy but they didn't have the money, so they gave out Monopoly money.

FWIW, looking at it from the viewpoint of a citizen & taxpayer, I'd call "pension benefits are protected in the constitution" a scam perpetrated up