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Looming at the end of the decade is a demographic transformation that threatens to swamp the budget and the economy with unfunded benefit promises, like Social Security and Medicare, of roughly $25 trillion in present value.
The debate over the G.I. benefit promises to be laden with politics since Senator John McCain of Arizona, the Republican presidential contender, is backing a less costly and less expansive alternative, which Democrats will take pains to point out.
"Using lively, populist art, the park shows the roles models and history of the party, exerting a subtle influence on the public and providing them with a 'red benefit'," promises an article on a local government website.
Many advocates on the left seized on the updates to argue that no changes were needed, especially for Social Security, while some on the right said the report showed a need for cutbacks in future benefit promises or even for privatization.
The guaranteed-minimum-income benefit promises to base variable annuity payouts on the assumption that accounts grow 5% to 6% a year, compounded, even if the underlying investments fare far worse.
If you do, consider whether you can buy the benefit more cheaply as part of the variable annuity or separately (e.g., through a long-term care insurance policy)." And, as is the case with all insurance, these extra benefit promises are only as good as the long-term financial strength of the insurance company that's selling and backing these products.
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Meanwhile, the annual bill for healthcare for public retirees — a benefit promised decades ago — has more than doubled in the last decade.
As noted above, big data analytics in healthcare carries many benefits, promises and presents great potential for transforming healthcare, yet it raises manifold barriers and challenges.
Yet Sweeney fears that, with $46 billion in unfunded liabilities and a history of stiffing its pension fund, New Jersey might one day be unable to meet its benefits promises or will spark a financial disaster in trying to do so.
Among the benefits promised to many employees are health benefits and pension benefits.
State and local governments nationwide say they are struggling to pay retirement benefits promised to employees.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com