The Volokh Conspiracy » Blog Archive » Underfunded Public Pensions as “Stranded” Costs? Two Trillion Dollars?: "Two trillion dollars? One question about these obligations is whether taxpayers will stick around to pay them, or instead will vote with their feet. (“Vote with their feet” is something that has been discussed in various ways at VC — as an aspect of a federal system and states with their own laws.) Many of these pension obligations have been incurred by municipalities and others by states, and in some cases the obligations are intertwined. But what happens if voters-taxpayers move out?"
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What, indeed?
2 comments:
But I'm wondering, where the voter-taxpayers are going to move. Obviously away from Illinois, which is the single worst offender at the state level, but really, where? What states and municipalities haven't played this game?
Don't worry, the fed and states have already figured out a way to solve such liabilities. When you retire you will be forced to utilize a particular health care plan. Now in addition to saving costs of healthcare by denying coverage, there will be the added benefit of restoration of value in the pension plans as liabilities to individual participants goes away along with the participant who will no longer be participating in the plan due to er, uh, early attrition as a result of denial of medical care/procedures.
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