The unfunded liability of the federal government’s pension systems exploded in fiscal 2011 to $761.5 billion dollars — an increase of $139 billion from its fiscal 2010 deficit.
The Civil Service Retirement System once again accounted for the bulk of that unfunded liability. Its deficit grew from $634.5 billion in 2010 to $741.4 billion in 2011, according to the Office of Personnel Management’s Civil Service Retirement and Disability Fund annual report for fiscal 2012. OPM released the report at Federal Times’ request.
The Federal Employees Retirement System slipped back into the red. FERS held a projected $12.2 billion surplus at the end of fiscal 2010 — its first in four years. But one year later, FERS reported a $20.1 billion unfunded liability. (Read More)
The article goes on to note that Republican Senators Tom Coburn and Richard Burr are going to re-introduce legislation that would eliminate defined pension benefits for future federal employees. I don’t expect them to get much support, or even from some of their Republican colleagues, even though it’s the right thing to do. Why should the taxpayers continue to fund these generous pensions when most of use are funding our own retirements. At the rate things are going, most of us in the private sector will be lucky if we can retire at all.