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Suddenly, Retiree Nest Eggs Look More Fragile — and many of them know it. More...


http://www.nytimes.com/2013/06/16/your-money/suddenly-retire...
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I'd didn't see too much new there. The message is if you plan to retire, save, save, save, and then save some more. Otherwise, you won't be able to fully retire in style. Either you will work at least part time, or you will retire at a lower standard of living.

Same old, same old. Of course each new generation needs to be reminded. Lest they forget or neglect the issue.

I expected that he would address the issues posed by the pending Detroit chapter 9 filing. It looks as if existing retirees are going to get crammed down on pension and lose some of their promised benefits.

Heretofore, govt jobs and pensions have been pretty reliable. People will be watching the outcome closely. Will Pension Benefit Guarantee come to the rescue? Or will they lose major benefits?
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pauleckler writes,

I expected that he would address the issues posed by the pending Detroit chapter 9 filing. It looks as if existing retirees are going to get crammed down on pension and lose some of their promised benefits.

Heretofore, govt jobs and pensions have been pretty reliable. People will be watching the outcome closely. Will Pension Benefit Guarantee come to the rescue? Or will they lose major benefits?

<snip>


The PBGC (i.e., Pension Benefit Guaranty Corp) doesn't cover state, or other public-sector pensions. They only cover private plans that pay insurance premiums for the coverage.

intercst
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The PBGC (i.e., Pension Benefit Guaranty Corp) doesn't cover state, or other public-sector pensions. They only cover private plans that pay insurance premiums for the coverage.

Not speaking for others, but I think the poster might have been raising the issue of whether the US Government will bail out the pension and health liabilities of cities, counties, and states. Personally, I think this would be a disaster for the US as a whole, plus it would do nothing but encourage further expansion of unfunded benefits by local governments.
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but I think the poster might have been raising the issue of whether the US Government will bail out the pension and health liabilities of cities, counties, and states.

That will never happen. The only solution for cities and counties is bankruptcy. It's already happened in places like Stockton, CA. States can't go bankrupt.

Bankruptcy is a formal process with a clear legal outcome that leads to a partial or total discharge of debts. It’s available only to individuals and certain classes of organizations. Individuals, most private companies, and local governments can go bankrupt but state governments, banks, and insurers can’t. (Banks and insurers “become insolvent” and have government-run or mandated insurers pay some or all what they owe.)
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