> Warren Buffett Blog: Pension problems coming due

Monday, March 3, 2014

Pension problems coming due

Local and state financial problems are accelerating, in large part because public entities promised pensions they couldn't afford. Citizens and public officials typically under-appreciated the gigantic financial tapeworm that was born when promises were made that conflicted with a willingness to fund them. 

Unfortunately, pension mathematics today remain a mystery to most Americans... During the next decade, you will read a lot of news – bad news – about public pension plans. I hope my memo is helpful to you in understanding the necessity for prompt remedial action where problems exist.