Tags: Govt | Pensions | federal | Bigger | Deficit | Social-Security

Report: Govt Pensions Have Bigger Deficit than Social Security

Thursday, 21 Oct 2010 01:52 PM

The debt burden of the Federal Employees Retirement System (FERS) is even worse than that of the Social Security system this year, says financial commentator Bruce Krasting, an ex-hedge fund manager.

FERS covers federal government workers, while Social Security covers the private sector. And FERS pales in size compared to Social Security.

“I pick on FERS as it is a little known entitlement program. They paid out only $70 billion last year, (while) their big sister, Social security will lay out $700 billion,” Krasting writes on Business Insider.

But in fiscal 2010, ended Sept. 30, FERS had a larger impact on debt held by the public and total debt than the Social Security Administration, he says.

The numbers aren’t pretty. FERS added $62 billion to the government’s total debt load in 2010, he says. And it created a $37 billion increase in debt held by the public. Those totals exceed the numbers for Social Security, Krasting says.

“In our big economy FERS won’t sink us,” he writes. “But it is just one piece of the puzzle on entitlements.”

New York Times columnist David Leonhardt sees Medicare as the key entitlement. “Making big cuts to everything but Medicare and Social Security might save $200 billion a year by 2035,” he writes.

“But by then, annual Medicare spending is projected to grow by more than $1 trillion. So any deficit strategy needs to focus on Medicare.”

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The debt burden of the Federal Employees Retirement System (FERS) is even worse than that of the Social Security system this year, says financial commentator Bruce Krasting, an ex-hedge fund manager. FERS covers federal government workers, while Social Security covers the...
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2010-52-21
Thursday, 21 Oct 2010 01:52 PM
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