Morning Jolt: Republicans Need to Promise Now: No State Pension Bailouts

TODAY'S JOLT IS SPONSORED BY

WITH DOMINIC PINO

June 18 2024

Republicans Need to Promise Now: No State Pension Bailouts

This is Dominic Pino filling in for Jim Geraghty.

On the menu today: Depending on which estimate you use, state governments' unfunded pension liabilities are anywhere between $1.35 trillion and $6.96 trillion. When a crisis happens, Republicans at the national level must stand up for taxpayers and refuse to create moral hazard by bailing out failing state pension funds. The best time to make that commitment is now, before such a crisis occurs.

Why State Pensions Are in Trouble

Defined-benefit pensions are a thing of the past for most American workers, if they ever had them, yet they persist for many government employees. Today, the defined-contribution model is more common for the private sector. A 401(k) account is defined-contribution.

Defined-benefit means that retirees get a promised payout no matter how the fund performs or how much they contributed. Defined-contribution means employees contribute a proportion of their pay into their own account, matched in part or in whole by their employer, that will pay varying amounts in ...

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In today's financial landscape, many investors are feeling disappointed with traditional investment options. The once-trusted pillars of real estate, stocks, and bonds have left many Americans feeling unprotected. But, there is one asset that may help... Get this free guide to learn more.

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