Labor Department officials say 33 states have funds below recommended levels and nearly half the states could run out in six months. States cannot skip paying unemployment insurance benefits to out-of-work employees meaning they must borrow money if the funds get too low. More
Sphere: Related Content
Photo victoria
By David Cho
Accounting tactics conceal a crisis for public workers
The funds that pay pension and health benefits to police officers, teachers and millions of other public employees across the country are facing a shortfall that could soon run into trillions of dollars. But the accounting techniques used by state and local governments to balance their pension books disguise the extent of the crisis facing these retirees and the taxpayers who may ultimately be called on to pay the freight, according to a growing number of leading financial analysts. Read more
Sphere: Related Content
Photo Squeakymarmot
THE biggest US pension funds lost ground in the first quarter and are likely to require larger contributions from their corporate sponsors this year, joining the ranks of home-owners, lenders, and others hurt by the recent turmoil in the financial markets. At the same time, some of the biggest US companies have begun taking steps to shield their pension funds from market volatility by moving out of stocks.
Read more