Obligations to Workers Big Problem?

Summary


GREECE'S financial crisis has led to riots by government employees. That is far away from us, but Connecticut and many states will face similar financial crises soon as they must make good on pension and health benefits. For politicians, these employee benefits were a slam dunk. They knew government workers would turn out to vote, and generous pension and retirement health benefits that didn't have to be paid for years would get them elected and re- elected.

Some politicians, including Gov. M. Jodi Rell and state Treasurer Denise L. Nappier, have been warning about the problem for years, with little success. Things may be even worse than what they have told us.

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Extract


Obligations to Workers Big Problem?

The reason is that the gloomy figures they are looking at are based on the best scenario of how well the investments socked away to pay for these benefits will perform. The fu...

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