Town's Pension Fund Failure a Warning Sign

Thursday, 23 Dec 2010 01:00 PM

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink
What happened in a tiny, broke Alabama town when its pension fund ran dry could foreshadow the misery awaiting other cash-starved localities and even whole states, The New York Times reports. When checks to the 150 city retirees of Prichard, Ala., near Mobile, stopped going out in 2009, many cut-off recipients saw their lives upended

Some went back to work. Others filed for bankruptcy. One pensioner, a retired fire marshal who was too young to collect Social Security and too proud to accept help, was found dead in his home in June with no electricity or running water.

“The situation in Prichard is extremely unusual . . . but it proves that the unthinkable can, in fact, sometimes happen,” the Times reports. “And it stands as a warning to cities like Philadelphia and states like Illinois, whose pension funds are under great strain.”

The pension crises loom large in a debate the Wall Street Journal’s Peter A. Brown writes could be “among the most contentious . . . that will face the new Congress in January”: whether the federal government should bail out the states, whose total red ink exceeds $100 billion.

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

US Crude Plunges 10% in Biggest One-Day Drop Since 2009

Friday, 28 Nov 2014 21:41 PM

U.S. crude tumbled 10 percent in its biggest one-day drop in more than five years on Friday, and benchmark Brent broke b . . .

National Protests Over Ferguson Briefly Close Malls, Shut Down Trains

Friday, 28 Nov 2014 21:20 PM

Demonstrators temporarily shut down two large malls in suburban St. Louis on one of the busiest shopping days of the yea . . .

Next Partisan 'War' in New Congress Will Be Over Science

Friday, 28 Nov 2014 19:58 PM

After midterm battles, an immigration standoff and amid a switch of power in Congress, the next political fight in Washi . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved