Gruss Gott wrote: > Jochem wrote: >> Why is that point here? What is the magical number that decides that it is >> going to happen *now*? > > Because up until now the money withdrawn from pensions was less than > the money in the monthly pension payout.
The difference between both is pretty much proportional to the ratio between active employees and retired employees. So what was initially a surplus has been steadily declining and is now at break-even. It seems to me that governments have been dealing with reduced for a while now. >> Would they get a federal bailout when they don't have bankrupcy protection? > > It's not bankruptcy protection, it's laws that guarantee pension > payout. For example, on the private level, the federal gov't created > the PBGC to guarantee that even if a company with a defined benefit > went bankrupt, the pensioners wouldn't be totally out of luck. There you have it, "went bankrupt". Bankrupcy is the ultimate 'proof' that you really can't pay. >> Taxes of course. But I don't see local and state governments being bailed out > > I believe the Federal Gov't is the ultimate guarantor of the defined > benefit which would mean that if a city cannot pay, the feds have to. But when has a city reached the point where it cannot pay? Isn't that when it is bankrupt? Jochem ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Discover CFTicket - The leading ColdFusion Help Desk and Trouble Ticket application http://www.houseoffusion.com/banners/view.cfm?bannerid=48 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:157706 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
