Rhode Island pension fund realize it was a scam

And it's not just Rhode Island bet on it.

Rhode Island pension crisis is now

After decades of drift, denial and inaction, Rhode Island’s $14.8 billion pension system is in crisis. Ten cents of every state tax dollar now goes to retired public workers. Before long, Ms. Raimondo has been cautioning in whistle-stops here and across the state, that figure will climb perilously toward 20 cents.

So the money that will go towards pension will DOUBLE before long... guess what that means...

- Higher taxes and/or
- Services cuts and/or
- Reduction of pensions

Look at what they promised and based their whole thing on :

Until this year, Rhode Island calculated its pension numbers by assuming that its various funds would post an average annual return on their investments of 8.25 percent; the real number for the last decade is about 2.4 percent.

Annual return of 8.25%! Instead, they got a 2.4% interest! And they now just figured it was a scam and a big lie they sold to the taxpayers.... They should have figured this out (more like come clean about it) after the first year or so... not A DECADE LATER...

Let's do a little math. What they planned VS reality.

What they planned (at 8.25%) : (let's say they had 12 billion in pension in 2001)
2001 : $12 billion.
2011 : $26.50 billion.

Reality (at 2.4%)
2001 : $12 billion.
2011 : $15.21 billion.

A ``little`` shortfall of 11.29 billion or about 94% of the original amount.

They lied about the numbers from the start. And they based their budget on it. Now who's gonna pay for this? Everyone.

This ain't just Rhode Island. Forget the pension. What was promised (for votes) won't be paid. It just can't.

So all that money I put into my Pawtucket Patriot Brewery retirement fund was for naught!? What the deuce!?

reply to post by Vitchilo


i wonder how much money is hidden
in rhode island's CAFR?

ahh here's the one for 2010 : controller.admin.ri.gov...

i'll let you do the math as i'm tired and haven't eaten in 2 days
price of liberty i suppose.

S&F