Unfunded pension clash

Pension Clash
A $1 trillion U.S. pension gap is dividing two longtime allies: Democrats and unions. Left-leaning politicians in a number of states are increasingly supporting more aggressive revamps of retirement benefits despite opposition from labor officials. The latest clash is unfolding in Pennsylvania, which has $50 billion in unfunded pension obligations. We report that since 2009, 25 out of 34 states that had Democratic governors in office have rolled back retirement benefits for public workers. Pension-cutting Democrats can come to be seen as the lesser of two evils for union officials, while Republicans often pursue more drastic steps such as ditching traditional pensions altogether. Still, public-sector unions have countered by filing lawsuits to block cuts and spending big to support alternative political candidates.

source :

The Wall Street Journal
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Posted in Uncategorized

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