State funded pension, (retire, area, employers)

[snapper54]

If the state were to default on state funded pensions, would these pensions be thrown in to the federal fund that takes over defaulted pensions? If it does, does'nt this fund only pay half of what it was?Is this a possibility?

[Drover]

The Pension Benefit Guaranty Corporation only insures private-sector pension funds. Public-sector beneficiaries are at the mercy of their employers' diligence in funding the pension trust and/or the taxpayer's willingness to bail them out.

[snapper54]

I'm not in the public pension. I'm in a self defined fund controled by are own members and I under stand how that works. I know a few people that have state funded pensions and was curious If there was some kind of protection. In self defined pension we have to meet certain criteria or the fed gov step in and takes over. With the state not fully funding the state plans, can this affect years that have already been aquired by members getting ready to retire? It just seem that this is an area that state gov keeps talking about, and might be going after. I know they have good pension, but are they protected?

[Drover]

My previous reply stands.