Treasury Insolvency & OPEB/Pension Governance
Key Questions
What are the U.S. Treasury's net liabilities versus assets?
Treasury net liabilities total $47.8T against $6T in assets. OPEB gaps range from $971B to $1.48T across states and localities.
Which pension funds are facing major shortfalls or governance issues?
Examples include PSERS with a $41B shortfall, Chicago's $36.4B hole, and CalPERS governance failures. Allegheny County is only 32.7% funded.
What legal actions involve pension transfers to private insurers?
Verizon retirees are suing over a $5.9B transfer to insurers, losing PBGC protections. The DOL has filed an amicus brief signaling scrutiny of such moves.
How much might retirees need for healthcare costs according to Fidelity?
Fidelity estimates average retiree healthcare costs at $185.5K, up 7.5% year-over-year, covering premiums, deductibles, and other expenses beyond Medicare.
What changes does California AB 1383 propose for public pensions?
The bill would roll back PEPRA by raising pension caps and lowering retirement age for safety workers, with review scheduled for August 3.
Treasury net liabilities $47.8T vs $6T assets. OPEB gap $971B-$1.48T. Key examples: Alabama PEEHIP, NC State Health Plan, Woburn OPEB, PSERS, CalPERS, WA LEOFF 1 sweep, Illinois pension buyout, Chicago $36.4B hole, NYC retiree health funds drained. New: Public Pension Watch challenges 85% funded ratio—$1.13T shortfall, 31.83% contribution rate. Washington state tapping pension surplus. Illinois pension crisis—Chicago $36.4B unfunded, statewide $200B+ at 52% funded. NYC TRS miscalculated disability pensions. New: NYCERS pension abuse case: lifeguard $570K pension; Empire Center data shows 62 members with $200K+ pensions, six-figure pensioners doubled since 2020. Article distinguishes state pension risk from Social Security risk. New: California pension rigging story—AB 1383 would let unions keep normal cost low via inflated return assumptions (7.75% vs actual 6.7%), then stick taxpayers with $90K shortfall per employee; 76/24 taxpayer/employee split.