State Pensions: Will This be America's Next Financial Crisis?
Because of the recent economic downturn and associated budget challenges, the majority of state and local government employee pension systems are severely underfunded. There are more than 3400 state and local pension programs in the US, responsible for the retirement income of more than 27 million employees and beneficiaries. But many have been forced to undergo pension reform initiatives in order to save money, which include reducing member benefits, increasing member contributions or switching to a hybrid pension plan that requires employees to contribute and invest their retirement savings. The alternative to making up the state's shortcomings is to raise state taxes, which was recently proposed in California. In order to cover a major shortfall in its teacher pension program, California's governor has proposed raising their state income tax rate 10.3 to 13.3 percent. If it passes this would be the highest state income tax rate in the nation, making California's top income earners paying more than 50% of their annual income in state and federal taxes. Tune in to this week's CBTV show on Friday at 4:00 PM EST to find out why state and local pension programs are in such jeopardy and what you can do to make up for your pensions shortfall.
If you want to add your voice and contribute to this existing news event, use the event code
(Event Code: @12886556), that you will find on each news event page, as the first word of the
SMS or MMS message followed by a space then add your contribution (text, image or video). For example:
@12886556 This is an amazing video of Greg Norman hitting a hole-in-one in Sydney, Australia.
The first word of the message should be @12886556 (event code), to make sure the system attaches
your voice to the right news event.