Visitors Now:
Total Visits:
Total Stories:
Profile image
By Moonbattery (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Unfunded University Pensions Headed for Trouble

Wednesday, November 23, 2016 5:57
% of readers think this story is Fact. Add your two cents.

(Before It's News)

These are high times for those in higher education. Tuition and taxpayer subsidies are lifting revenue through the stratosphere as Big Government does all it can to get ever more people attending college, including many who do not stand to benefit. Apart from the crucial role universities serve regarding education and research, there has been an explosive expansion of a remora class of useless moonbats teaching frivolous subjects to students who are not so much preparing for their adult lives as hiding from them. In social justice–dominated liberal arts departments, bloated salaries and lavish benefits are sometimes bestowed upon middle-aged adolescents who perform little work, none of it productive. A party this wild can’t go on forever :

Unfunded pension liabilities are higher than capital-related debt at the country’s public universities, according to a report Moody’s Investors Service issued Friday.

Moody’s said adjusted net pension liabilities will represent more than 60 percent of total adjusted debt by the end of the 2017 fiscal year. Unfunded pension liabilities totaled more than $183 billion across the sector after two straight years of investment returns below actuarial assumptions and after contributions to funds have remained weak.

Currently, pension expenses are just 3 percent of universities’ reported expenses, Moody’s said. But it anticipated pension expenses rising along with liabilities, putting more pressure on university finances. Moody’s also predicted that some states will shift pension burdens onto universities by lowering allocations to pay for other operating expenses.

Public school pensions are already crippling Illinois. If university pensions follow them into the sea of red ink, people may start asking what they are getting in return for all that money. That’s when the music stops and the party comes to a halt.

On a tip from R F.

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.