Everyone knows PERS is going to implode one day. PERS executives, legislators, State executives, they all know.
Here are just a few articles on the topic just last week:
- The Pension Time Bomb
- Collapse of Public Pension Funds is No Longer a Distant Prospect
- Public Sector Pensions are a Problem
Pension Tsunami posts links to many stories every day.
From the Collapse article:
The next phase of public pension reform will likely be touched off by a stock market decline that creates the real possibility of at least one state fund running out of cash within a couple of years. The math says that tax increases and spending cuts cannot do much. For one thing, as we learned from Detroit, at a certain point high taxes and poor services force people and businesses out. The numbers are just too big in some states to come out of the budgets. For another, voters won’t stand for it. The voters in these states have refused for decades to pay the full costs of the services they were already enjoying; they’re not going to have sudden conversions to paying full costs, plus the accumulated costs from the past. State constitutions will be amended if necessary and big legal battles will be fought. I cannot see any plausible scenario in which full promised benefits are paid.
Ignoring the PERS crisis is bipartisan for politicians. It’s becoming obvious that it’s monkey see, monkey do. Why should Mississippi address the problem? No one else is.
That’s a winning strategy for politicians. Unless it blows up when you are in office. Which it will at some point for somebody.