The dust pile under Janet Cowell’s rug keeps getting bigger.
We recently explained how Treasurer Cowell’s assumption the state pension will earn 7.25% a year (when government bonds only pay 2-3%) are not realistic. And if she valued the pension fund realistically, we would face a gap of $81 billion between benefits promised and the money available to pay them. An $81 billion debt. North Carolina’s version of the mess Washington made with Social Security. (CPRNC.org)
Now Treasurer Cowell admits the pension fund only earned 2.3% last year, not the 7.25% advertised. Whoops. (News & Observer)
Instead of opposing the Taxpayer Protection Act, Janet Cowell ought to vacuum up the dust pile of debt in the pension fund she’s been sweeping under the rug.
And Legislators need to pass the reforms the Senate enacted to get a handle on the problem before teachers and state employees and taxpayers face a crisis. Because North Carolina can’t print money like Washington, Legislators should act now before a pension fund debt bomb blows up.