Pension Tsunami

Public pension plans around the country are entering an age of bankruptcies and broken promises. Some states realize they must make some hard choices. Some don't. When it all blows up blame will need to be laid which is what Milwaukee County [New Jersey] officials are doing this week as their lawsuit against their plan's actuary goes to trial. The trial will likely include actuarial arcana designed to confuse the jury to one side or the other but it really should come down to how much mute actuaries are to blame for the coming pension tsunami. Actuaries should be able to tell what a promised pension benefit would cost. But if they come up with too big of a number those benefits might not be provided which is bad for the government workers who won't get those benefits and bad for the government officials who will need to come up with some remuneration scheme that they won't be able to defer onto future taxpayers.

[Thanks to MPC for the link]