Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook

'Serpent Pastor' Dies of Snake Bite Mack Wolford believed faith compelled him to face the risk »

Losses Plunge Pension Funds Into Crisis

By Caroline Miller, Newser Staff

Posted Oct 11, 2009 7:31 AM CDT

(Newser) – Pension funds for police officers, teachers and other public employees are going broke
the Washington Post reports, with such steep losses in the financial crisis that they'll have less than half what they need to cover benefits within 15 years. That puts local governments... Read full story »

COMMENTS

Read the comment policy

You need to Log in to Newser to comment. Don't have an account yet? Sign up now!

10 comments

A snapshot of the day's best news stories.

View Larger Grid

All Today Yesterday Pick a Date

What's Popular Now on Facebook

'Serpent Pastor' Dies of Snake Bite

Miami Face-Eater Identified

Washington Post (Source Grid »)

US • Money • Politics

pension funds

More Newser Stories

Pension Fund Sues Walmart Directors Over Mexican Bribery

Suit: Directors, execs should compensate firm for 'gross misconduct'

(NEWSER) - A major Walmart shareholder is suing current and former directors and execs on the company's behalf over the Mexican bribery scandal . The California State Teachers' Retirement System —America's second-largest public pension fund—wants the directors and executives responsible for Walmart's Mexican unit to reimburse the company for damages suffered as a result of the alleged scheme to bribe Mexican officials, Bloomberg reports. More»

A First for US Public Pension Fund: Bankruptcy

Northern Mariana Islands' fund could run out of money in 2 years

(NEWSER) - It's a high-profile milestone out of a not-so-high-profile place. The Northern Mariana Islands' public pension fund sought bankruptcy protection last month, a notable move in that it's the first such US fund to do so. The Wall Street Journal paints a picture of a complicated road to collapse for the Pacific Ocean territory, complete with a prominent Merrill Lynch fund adviser who went missing while fishing last year, a perhaps overly generous approach (when pensioners die, their kids can collect part of the payments), and a lawsuit against Merrill Lynch itself. More»

Big Biz Seeking to Cut Pension Funding

Companies complain they're being forced to sit on too much cash

(NEWSER) - Low interest rates are forcing major employers to put too much money into their pension funds, according to business groups urging Congress to allow contributions to be cut. A measure attached to the Senate highway bill would change the formula major employers use to calculate contributions to defined-benefit pension plans, allowing them to divert funds elsewhere, reports the Wall Street Journal . The measure before Congress would allow firms to use a 10-year average of bond yields, instead of a 2-year average. If it passes, it would be the sixth relaxation in the pension formula since 2002. More»

As US Hits Debt Limit, Treasury Taps Fed Pensions

Move staves off default until Aug. 2

(NEWSER) - Washington hit the debt ceiling today, barring the Treasury Department from borrowing from the public, so it will begin borrowing from federal workers’ pensions to keep the government afloat. Treasury is legally bound to reimburse the pensions, so retirees won't be affected, notes the Washington Post , but if the debt ceiling isn’t raised by Aug. 2, secretary Timothy Geithner warned again today that the US will hit default. More»

State Pension Funds Come Up $1.26T Short

Market losses, aging population leave funds in dire straits

(NEWSER) - States' pension and health care funds had a disastrous year in 2009, saving a whopping $1.26 trillion less than they’ll need to pay the retirement benefits they’ve promised to their workers, according to a new study from the Pew Center on the States. Part of the problem is that market losses related to the financial crisis savaged funds across the country, but states also just aren’t contributing enough to their funds to deal with their aging workforces, the Washington Post explains. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Losses Plunge Pension Funds Into Crisis

pension funds

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Pension Fund Sues Walmart Directors Over Mexican Bribery

Suit: Directors, execs should compensate firm for 'gross misconduct'

A First for US Public Pension Fund: Bankruptcy

Northern Mariana Islands' fund could run out of money in 2 years

Big Biz Seeking to Cut Pension Funding

Companies complain they're being forced to sit on too much cash

As US Hits Debt Limit, Treasury Taps Fed Pensions

Move staves off default until Aug. 2

State Pension Funds Come Up $1.26T Short

Market losses, aging population leave funds in dire straits

About Us

Site

Community

Site Maps

Tools

More News

What is Newser?