Post-retirement Health Care Ponzi Schemes

States haven’t financed almost 96 percent of the $627.4 billion they were projected to owe for future retiree benefits in 2010, according to Bloomberg Rankings data…

Most states cover such expenses on a pay-as-you-go basis, yet per capita U.S. health-care spending rising an average 5.8 percent annually for the 10 years through 2009 has made covering required payments increasingly difficult. Stockton, confronting a $417 million unfunded liability for retiree medical benefits, took a step toward Chapter 9 bankruptcy Feb. 28 when the City Council voted to enter a 60-day mediation with creditors.

Entire article from Darrell Preston in Bloomberg.

Comments (7)

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  1. Brian says:

    Cities going bankrupt from entitlements and other spending – that could, unfortunately be the big story within a few years time.

  2. Buster says:

    This is scary. First states promise unionized state and local workers lavish retiree benefits that are worth more than the cash wages paid during the short tenure. Then states don’t bother to set aside funds for retiree benefits.

  3. Joe Barnett says:

    As an NCPA study pointed out, local and state governments aren’t required to report projected retireee health expenses as unfunded obligations and do not put funds aside for that purpose. However, health care expenses for former government employees are rising rapidly.

  4. Greg says:

    I’m not surprised.

  5. Keyonn says:

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  6. Rathod says:

    Per ora, a parte il teaser che somtra poco o nulla, possiamo giudicare solo la grafica dagli screen..b , dire che non ben realizzata non ha molto senso. Se gli sviluppatori puntano su una base grafica a “cartoon” poco importa, quello che conta che sia realizzata bene! E qui, secondo me, di atmosfera(come dice galilee) e grafica “tetra” ce n’ abbastanza..secondo me pi che soddisfacente

  7. Sarihe says:

    You didn’t answer the aaistpnm question correctly, your comment was not saved. Press “Back” and answer the question better.Just to be sure that your message won’t be lost – copy it now to the clipboard. 搞得我很紧张来着.. 特地来留言测试一下下….果然..是啥子插件啊?压根都木有问题出来