Letter Re: Long Term Public Employee Pension Obligations
James: I just read Warren Buffett’s comments about municipal bankruptcies on the rise. (See: Buffet Says Muni Bankruptcies are Set to Climb.) Much of the problem is the super generous retirement plans available to many state, federal and local government workers. As always, a bit of common sense would help cushion the impact of this largess. After 30 years of service workers are allowed to retire with a full pension. Many retiring workers are still in their early fifties. In many cases pensions are being paid out for 10-15 years before the workers are eligible for SS. To put this …