Over the past several months, we have heard a great deal about Medicare going bankrupt in 2024, and Social Security going bankrupt in 2037. But, there is another program that has received little attention…retirement programs for former federal workers.
According to an analysis done by USA Today, at present, the federal government has an unfunded liability of $5.7 trillion to cover benefits promised to both military and civilian employees. In the private sector this would be prohibited as all private sector pension funds are legally required to be 100% funded.
Here is a glimpse of the findings.
The government paid a record $268 billion in pension and health benefits last year to 10 million former civil servants, military personnel and their dependents, about $100 billion more than was paid a decade earlier after adjusting for inflation.
And, last year,
…the federal government…made more than a half-trillion dollars in future commitments, valued in 2010 dollars that will cost far more to pay in coming decades. Added last year:
- $107 billion in retirement benefits accumulated by current workers.
- $106 billion in new benefits granted to veterans.
- More than $300 billion in the snowballing expense of previous retirement promises that have no source of funding.
We have over spent and over promised.
Meanwhile, yesterday, the Department of Energy shoveled another $4.7 billion in loan guarantees out the door to three solar-power plants and one large solar project. Remember, if the guarantees were not made by yesterday, the Department of Energy would lose the ability to do so, and, not spending every dime allocated to you is unthinkable in government circles.
Let me correct the above statement…not only have we over spent and over promised, but, our government’s priorities are totally removed from reality.