Federal Times article exposes the Big Lie about “unfunded” federal pensions

To hear right wing pundits talk, you’d think the federal pension system was about to destroy America. That’s why millionaire politicians like Darrell Issa want to eliminate pensions for middle class working people (while clinging to their own more lucrative taxpayer financed retirement plans).

A recent Federal Times article discusses the “problem” in some detail, and comes to a surprising conclusion: there isn’t a problem!

But there’s no evidence to suggest federal pension plans are a financial bomb waiting to go off. That was defused when CSRS was ended, and since FERS is legally required to be fully funded, the unfunded liability will fade over time.

OPM and outside observers such as Adcock and Palguta aren’t the only ones saying the system is sound. The Congressional Research Service has published several reports in recent years on federal pension programs, all of which concluded the programs are on solid ground.

"Although the civil service trust fund has an unfunded liability, it is not in danger of becoming insolvent," CRS said in a January report.

Audit firm KPMG has consistently given OPM’s financial statements and retirement programs unqualified opinions, meaning they found no significant problems.

And the Government Accountability Office said in a 1995 report that CSRS’ flaws, which resulted in the unfunded liability, were resolved with the creation of FERS.

"Provisions have been made for the retirement fund to always have sufficient budget authority to cover future benefit payments," former Assistant Comptroller General Johnny Finch said at a House hearing.

via Fed pensions underfunded by $673B – FederalTimes.com.

  • Liam Skye

    “Although the civil service trust fund has an unfunded liability, it is not in danger of becoming insolvent,” CRS said in a January report.

    Anybody figure out why the CSDRF fund is not in danger of insolvency, even though it is underfunded? Because USPS has fully funded its own obligation and that money has been used to subsidize the pensions of retirees from the other agencies, that’s why.

  • Linda

    This places going down.
    Layoffs are inevitable.

  • pelican

    This whole thing just plain suks

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  • firedonabloe

    If there is no problem prefunding 75 years in 10 years then where and what is the problem. I say it is those in the private sector sponsored by the legal bribes allowed by Justice Thomas and the Supreme Court. The privatizers in congress and the house see dollar signs. Why doesn’t the media and the white house? A 22 million dollar bill the last 4 years is not the smoke screen here. Simple math tells me that prefunding $22 billion with a $20 billion loss equals a $500 million gain each of the last 4 years. The lies and deceptions must equal prison time for these traitors illegally privatizing our country.

  • Wake up

    30 years of FERS ends in Jan 2014.The govt does not want to pay retiring postal FERS employees over $700/month for the social security supplement beginning at that time! Thus the push go destroy the postal service or get us out of FERS

  • make some cents

    WAKE UP ARE YOU SLEEPING ? WHERE DO YOU GET FERS ENDS IN JAN 2014 ???? I FOLLOW ALL THE GOVERMENT SITES ON A DAILY BASIS ! OR ARE YOU DONE IN JAN. 2014 PLEASE EXPLAIN

  • Mikey

    Vote all these co@ksu@kers out of office!! Get rid of the teabaggers!!

  • Oh Me

    What Wake Up is saying is that Fers began in 1984 and you are due the Soc Security supplement after 30 years of service. Kill Fers before 2014 and you will not have to pay 700,000 postal employees that Soc. Sec Supplement – thats why there is a push to get Post Office out of Fers. Makes sense

  • Poor Richard

    Hey, the world ends on Friday. Party. Or so says the Rev. Camper.

  • make some cents

    oh me there are only 586,000 now in the post office

  • lets get this right

    Oh Me the social security supplement is paid out to fers employees who retire before the age 62 then social security picks up the tab from there. So if an employee retires at 56 with 37 years of service this equates to the employee receiving 92.5% of his projected social security. If this or any other employee waits to retire till 62 or older they are no longer entitled to social security supplement they just receive their payment straight from social security.