Sunday, October 2, 2011

PAYING FEDERAL RETIREMENT PLANS THROUGH TAXES AND BORROWING

USA TODAY – 10/1/2011 – Dennis Cauchon
Federal Retirement Plans Almost as Costly as Social Security

Retirement programs for former federal workers — civilian and military — are growing so fast they now face a multitrillion-dollar shortfall nearly as big as Social Security's, a USA TODAY analysis shows.

The federal government hasn't set aside money or created a revenue source similar to Social Security's payroll tax to help pay for the benefits, so the retirement costs must be paid every year through taxes and borrowing.

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