In an exclusive op-ed for the RealClearPolicy website, I address the U.S. public pension crisis. A slice:
While underperforming investments receive the most attention, they aren’t the real reason for the tax hikes and cuts in government services needed to bail out public pensions. In reality, the culprit is the extraordinarily generous nature of the benefits themselves, whose costs are only now coming to the surface.
Take my home state of Nevada, for example. Like most U.S. plans, the Public Employees’ Retirement System of Nevada (NVPERS) outperformed its investment target over the past 30 years, yet costs soared anyway — totaling 12 percent of all state and local tax revenue in 2013, the second highest rate nationwide.
Be sure to read the whole thing here.