We have seen this problem in many local municipalities that are considering bankruptcy. They promised civil servants substantial pensions at a relatively young age. Employment opportunities changed and the young people moved away. There is not the money to keep the pension promises.

We will see Local Governments change their pension to Defined Contribution Plans, eliminating Defined Contribution Plans. In other words, there will be no more promises. The employee will draw from what they are able to save.

When Social security started there were 42 working people for every retiree. Today there are 3 workers for every retiree. Does that sound sustainable?

Will Federal Plans also move in that direction? Who knows. Local Governments are required to balance their budgets. The Federal Government with over $18 Trillion in National Debt does not have a chance at balancing the budget. Today our debt is over $56,000 per every man woman and child in the country and it is increasing every minute.