The issue isn't how much they are being charged, the issue is that far too many public employee unions have large pension deficits and cities, states, and the like, need a bogeyman. Looking for related stories, this pension went from over funded in 99 to underfunded by 2012, to the tune of only having 63% of what is should have.
Likely this is just the trial balloon, expect similar articles as the truth about government employee pensions funding comes to the forefront. Unlike private pensions the government at different levels can twist the rules quite a bit.
couple of scenarios come out of this
1) cuts to benefits, likely only through bankruptcy like Detroit. NYC should be able to avoid this result
2) tax increases to fund the pensions properly
3) finding new creative ways to fine financial companies for exploiting retirees and the like
4) bailouts, after all we have elections in a few years and what good polio wouldn't be for bailouts.. by the state or feds (again not necessarily for NYCERS, they are bad off but not the worst out there)
Money managers are the least of public pensions' problems. Unfunded liabilities are far bigger; it's easy to blame Wall Street rather than the policy makers who continue down the road to insolvency.
Likely this is just the trial balloon, expect similar articles as the truth about government employee pensions funding comes to the forefront. Unlike private pensions the government at different levels can twist the rules quite a bit.
couple of scenarios come out of this 1) cuts to benefits, likely only through bankruptcy like Detroit. NYC should be able to avoid this result 2) tax increases to fund the pensions properly 3) finding new creative ways to fine financial companies for exploiting retirees and the like 4) bailouts, after all we have elections in a few years and what good polio wouldn't be for bailouts.. by the state or feds (again not necessarily for NYCERS, they are bad off but not the worst out there)
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