Teacher pensions could create another state budget crisis
April 19, 2010 Filed in: Unions
Bankrupting America It would be comforting if the budget
crises inflicting states were just a temporary problem.
Unfortunately, as a new report
by the Manhattan Institute
details, states will face another crisis as their unfunded pension
benefits come due. This report focuses specifically on
teachers’ pension, and finds that all fifty-nine pension funds
dedicated to public school teachers face shortfalls.
California’s teacher pension alone has an unfunded liability of
almost $100 billion. All together, the unfunded liabilities
of these teachers’ pensions amount to between $332 (that’s the
estimate derived from the funds’ financial statements) and $933
billion (the report’s authors’ more conservative
calculations)...