An unfunded pension liability is the gap between what a pension plan owes in promised benefits (for service already rendered) and the assets it currently holds to pay those benefits; it’s essentially “pension debt” that governments or companies must pay off over time.
“The unfunded obligations dwarf the current national debt: Social Security currently has $22.4 trillion in unfunded obligations and Medicare has $52.8 trillion.[17] [18] With an additional $75.2 trillion in unfunded obligations on top of the $34 trillion and growing national debt, future generations of taxpayers will be faced with large tax burdens and fewer policy options.”
Years ago the United States was confronted with an equally challenging problem which was addressed forcefully and wisely.
08/15/24
