09/02/2010 - Regardless of economic climate, government offices continue to pay pensions. But the Great Recession is making governments re-think future employee pensions and how to deal with the pensions they're currently doling out.
States have a tendency to set benefit levels, know that it is a future cost and decide to worry about it tomorrow.
Governments did agree to these pensions in union contracts, often because it was cheaper than big pay increases. Now, they can't afford the annual contribution.
Listen to or read a transcript of the story, 'The Trillion Dollar Gap' in Pension Funds on the Marketplace Web site.