Public Pensions Headed for Disaster

By Megan McArdle, The Atlantic - May 22, 2010

The New York Times has a practically libertarian-sounding article on public pensions, and the strain they are putting on the state and local governments.  Public employees rack up overtime in their last year of work, with the active encouragement of their supervisors and even local politicians, then they retire with inflated pensions that can be greater than their base salary.

New York is the understandable focus, but these problems are hardly unique to my home state.  In fact, New York is among the better states on funding of pensions, because they actually have to do some.  Other states kinda sorta haven't really bothered -- at least not at anywhere near the levels that would be needed.  New York's problem is notable only because its public sector unions are unusually powerful.

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