The pension plans at General Motors and Chrysler are underfunded by a total of $17 billion and could fail if the automakers do not return to profitability, according to a government report released Tuesday.
Both companies need to make large payments into the plans within the next five years — $12.3 billion by G.M. and $2.6 billion by Chrysler — to reach minimum funding levels, according to the report, prepared by the Government Accountability Office. Whether the companies will be able to make the payments is uncertain, the report concluded, though Treasury officials expect the automakers will become profitable enough to do so.
http://www.nytimes.com/2010/04/07/business/07cars.html
California's three major public pension funds are underfunded by more than half a trillion dollars, according to a report released Monday, the San Jose Mercury News reports.
Gov. Arnold Schwarzenegger (R) commissioned the study, which was prepared by graduate students at the Stanford Institute for Economic Policy Research (Theriault, San Jose Mercury News, 4/5).
http://www.californiahealthline.org...public-pensions-underfunded-by-over-500b.aspx
The bursting of the real estate bubble and the ensuing recession have hurt jobs, home prices and now Social Security.
This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016, according to the Congressional Budget Office.
http://www.nytimes.com/2010/03/25/business/economy/25social.html
entitlement programs.
i included GM since we are "investors" now. california is included because the fed wont let california go under, so the rest of the country and look forward to picking up the tab. social security has been projected to go broke for years and years and years and the date keeps getting moved up.
but when you hear politicians talk about any type of entitlement program reform you get things like obama appointing a comittee on how to save money (gotta spend money to make money!) and a lot of hot air from congress proclaiming that we have to make changes! but never actually doing anything.
*lolz for forum mispost*