Hawaii may be giving millennials the short end of the stick when it comes to the state’s unfunded public pension liabilities.
That’s because the Aloha State owes more than $12 billion to the public pension system, and its own projections show that debt increasing to $28 billion over the next 30 years.
How does this affect millennials?
As Hawaii politicians continue to kick the debt can down the road, young people will be on the hook to pay for it, most likely through higher taxes, but also, if they decide to become new government employees, through fewer and less generous benefits.
Although it might not necessarily be a bad thing, this could reduce the incentive for millennials to work for government in the future, as has been the trend nationally. The hollow sound of a debt-filled system may not be so attractive to young people who are taking the long view about their financial futures. Young people in Hawaii have enough to worry about without being expected to make endless payments to fix problems they had no hand in creating.
Hawaii leaders would deserve our praise were they to make it a priority to solveour public pension debt crisis. I’m sure the millennials among us would appreciate it.