Monday, January 28, 2013

Dan Walters: California pension funds still face huge liabilities

I wish Dan would smile....

The result of such changes, Moody's says, is that the $766 billion in unfunded liabilities that U.S. pension funds claim triples to $2.2 trillion and if the firm adopts the proposed system for credit ratings, it will amp up pressure on those funds to get more money from taxpayers and/or employees.

That would imply that California, with about 12 percent of the nation's population, could have an unfunded pension debt approaching $300 billion, plus another $100 billion for retiree health care. That's big money in anyone's book.

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