As the municipal pension crisis continues to grow throughout America, some of the country’s largest and most storied cities are finding themselves scrambling to figure the best way to deal with the pronounced financial shortfalls.
I wrote recently about how the Chicago City Council hit residents with a new tax to keep solvent the Municipal Employees’ Annuity and Benefit Fund. In that same article, I pointed out that Chicago and New York are two examples of cities where more money is now spent on cops in retirement than on those actually working.
Can you say “unsustainable?”
Now we learn that the pension fund on which the city of Dallas’ police and firefighters rely is funded at just 45 percent presently…meaning that for every dollar the fund owes in pension income, there’s only 45 cents that’s actually available. According to an article by Mike “Mish” Shedlock over at MishTalk.com, the current rate at which withdrawals are occurring means that the fund will be entirely out of dough in 15 years.
The word is out about just how distressed the pension fund is, and now Dallas is seeing a spike in eligible cops and firefighters electing to retire and take lump sum payments while there’s still money available…and that trend is only adding to the enormous pressure under which the fund finds itself.
Hang on to your hats, folks; this is just beginning.
By Robert G. Yetman, Jr. Editor At Large