Episode #84

Why The Future of Public Pensions Could Be Bleak

« previous episode | next episode »

Friday, December 06, 2013

Across the country, cities and states are trying to figure out how to address the growing public pension crisis. Collectively, they're underfunded by an estimated $1 trillion.

This week on Money Talking, what Detroit, Illinois and Rhode Island all have in common. Plus, banking regulators meet next week to approve the "Volcker Rule," the proposal that would make it illegal for banks to make trades with their own money.  It's been three years in the making and has all sorts of exemptions, will it make the financial system safer?  Plus a look at Time Magazine's exclusive interview with Carl Icahn, the shareholder activist who's doing all he can to force a stock bigger buyback at Apple.

Hosted by:

Charlie Herman

Produced by:

Daniel P. Tucker


Rana Foroohar and Joe Nocera

Comments [2]

Mike from NYC

Underfunded... why? That's why. Read Tucker, read.

Dec. 13 2013 12:59 AM
Stuart Eber from NYC

For the Fiscal Year ending June 30, 2013 (FY ’13), New York City’s five public pension funds paid $12.3 billion in benefits to 292,955 retirees and beneficiaries, an increase of $0.5 billion over the amount paid in FY ’12. See Table 1.
The value of the funds’ net assets increased from $111.3 billion for FY’12 to $124.8 billion in FY ’13, an increase of $13.5 billion or 12.2 %. This compares to the increase in assets from $111.0 billion in FY’11 to $111.3 in FY’12 (+0.3%).
The revenues of all five pension funds increased in FY’13 to $25,717.2 billion from $12,074.7 billion for FY ’12, due mainly to the increase in investment income.
Active contributing members in the five funds totaled 371,921 for FY’13, an increase of 12,778 active members from the 359,143 in FY ’12.
We conclude once again that the City’s pension systems are fully funded and remain in sound financial condition.

Dec. 06 2013 12:09 PM

Leave a Comment

Email addresses are required but never displayed.

Get the WNYC Morning Brief in your inbox.
We'll send you our top 5 stories every day, plus breaking news and weather.