Our resident economist, Carl Pellegrini, warned in his December 27, 2005 article entitled "LET US TAKE A GLANCE INTO THE FUTURE OF 2006" about the dangers of unfunded (public and private) pension liabilities. He is not alone in worrying about this ticking time bomb. Rich Oppel, the Editor of the Austin American-Statesman wrote a January 1st article predicting the "collapse of the American pension".

Here is part of what Oppel has to ay about a neglected news event of 2005: "Yet a news event totally overlooked by editors will have great impact, and that is the collapse of the American pension. In 2005, massive liabilities were revealed for pension plans covering 44 million Americans... In a state capital, it is worth remembering this is not just about corporate employees. The Texas Teachers retirement System reported it had $13.2 billion less than it needed to cover obligations. Unless the Legislature supplements TRS holdings, future pension payments will be restricted."

To read the entire article, click here to link to Austin American-Statesman (registration required).

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