Federal and state employees may not be able to collect their full retirement benefits, as public pensions face a reported $2 trillion deficit, according to Orin Kramer, chairman of New Jersey’s pension fund. Because of federal and state deficits, it’s unlikely that the funds will be shored up by public dollars, Douglas McIntyre writes on DailyFinance.com.
Given those massive shortfalls, how should the managers of public pension funds respond? It seems to me that deep cuts in benefits payments are inevitable. These promises just weren’t sustainable.