Using a search engine, and typing in "pension plan crises", will reveal more information than you'll have time to read. Considering the magnitude of the budget shortfalls of pensions, you'd think there would be a strong effort to fix the problem.
From what I've read, many pension plans are basically bankrupt. More goes out than goes in, less contribute to the plan, and the brewing disaster is already affecting the credit ratings of some states.
There are only two ways to fix the problem:
- Find the revenue to make up the shortfall.
- Reduce pension payouts.
Regardless of which method is used, it seems too many are just taking the ostrich approach, but waiting only leads to major problems. If bankruptcy is the final outcome, the "plan", which is the agreed reduction in liabilities by creditors - may lead to pennies on the dollar. To someone already retired, pennies on the dollar of their planned income is a disaster. For taxpayers that may have to make up the shortfall of public pensions, the increase in taxes to pay for foolishness is unconscionable.