NY Gov. David Paterson: Public Pension Funds Are About to Implode...And On That Note, I Am Outta Here!

Today is New York Governor David Paterson's last day in office, and coincidentally he just had a most disturbing epiphany: America's public pension funds are at risk of insolvency.

Zoiks!

It's just so convenient too bad that Paterson won't be around to help clean up the mess. If only he had realized the urgency of the situation earlier in his term, he would have had time to do something about it.

Why are you laughing?

There is a new crisis on the horizon that threatens the solvency of local governments and the recovery of the U.S. economy: teetering public pension funds on the verge of insolvency, with the retirement security of millions of working Americans hanging in the balance.

In 2011, the health of these public funds will take center stage with the very real possibility of significant write-downs in pension asset pools at a time when most funds can ill-afford it. And while these problems were not created in a single year, immediate action will be required to avoid driving our economy deeper into the ditch of recession.

Paterson bequeaths a state pension fund that is $71 billion underfunded to incoming Governor Andrew Cuomo. Nobody knows what 'immediate action' Cuomo has in mind to rescue New York's pension system, but hopefully he's got something up his sleeve besides the 'ol tried and failed 'rob Peter to pay Peter' gimmick.

Don't hold your breath though.



Cross-posted.