The first is that the pensions had long been underfunded in the “I need THIS money now, I’ll pay THAT money later” approach to government spending. These so-called “unfunded liabilities” have caught the attention of auditors in recent years and, in order to protect their credit ratings, states have had to begin addressing them to preserve their ability to issue bonds, etc.

The other factor is that these funds have also been not just been underfunded over the years but overtly raided (Cayetano/ERS 1999 or so) or used as as a phantom way to balance the books (Social Security). Again, it’s the “it’ll be someone else’s problem later” approach.

The actuarial handwriting has been on the wall, so to say, for years, if not decades, and our leaders have failed to plan for it. It’s not the retirees’ fault that government made promises, then spent the money elsewhere, hoping against hope that they would later find, to paraphrase, a new Peter to rob so that they could pay Paul.

Really Ian? Over the years this has happened to me more times than I’d like to remember. I still have “ex” friends over two stories and a few damaged relationships. People love investigative pieces until it’s their ox being gored.