Gist: Lots of Americans have 401k plans that they pay into with each paycheck. If you work in the public sector, how much money you have when you retire depends on how the markets do while you are employed. On the other hand, if you work for the government, your retirement pension does not depend on the market. In dealings with labor unions, the government offered to pay higher retirement pensions instead of wage increases. Now, the government pension funds are short at least a trillion dollars. California owes 12 billion dollars.
As a result, governments at all levels are looking for ways to pay out these pension plans. There are government hiring freezes despite vacant job positions. Some want to raise the retirement age. Public employees and taxpayers are having to help out. Government pensions are typically much larger than pensions for equivalent jobs in the public sector.
Are there any solutions? Just the freeze?
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