As various pension plans around the nation take small steps towards facing reality, the entire state of Minnesota just woke up to the reality that a funding level of 53% on it’s state teachers’ pension fund equals only one thing: PONZI SCHEME.
From Zero Hedge
Defined Benefit Pension Plans are, in many cases, a ponzi scheme. Current assets are used to pay current claims in full despite insufficient funding to pay future liabilities… classic Ponzi. But unlike wall street and corporate ponzi schemes no one goes to jail here because the establishment is complicit. Everyone from government officials to union bosses are incentivized to maintain the status quo…public employees get to sleep better at night thinking they have a “retirement plan,” public legislators get to be re-elected by union membership while pretending their states are solvent and union bosses get to keep their jobs while hiding the truth from employees.