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Originally Posted by IanWatson
Last week the CH published a doom-and-gloom opinion piece ridiculously equating NS with Detroit. Drybrain had a good response in today's CH.
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A city can go bust. A state/province cannot.
The original article was rubbish, a grotesque over hyped description of the problems we face.
The Detroit pension plan was a promise that could never be kept. The same can be said of many municipal and state pension plans in the USA.
Firefighters in NY insisted they alone should be responsible for rescuing people from the 9/11 rubble,'finding our brothers' etc. New York police and firefighter pensions are based on the gross earnings in the final year of employment, a ridiculous plan which leads to an actuarial nightmare when attempting to forecast future liabilities and the requisite funding.
The Detroit pension plan was an unfunded mess. I don't recall the details but a few years ago I read a considerable amount of documents relating to state and municipal pension and benefit plans in the USA.
Google is your friend if you really want to understand the financial mess in US jurisdictions where politicians have caved in to public sector employee demands.
http://www.bloomberg.com/news/articles/2...ch-town-may-privatize-100-000-lifeguards