South Carolina voters will decide next Tuesday, in part, how soon they want their public pension plan to blow up on them. Their $9 Billion deficit can begin to be addressed by allowing pension dollars to be invested in the stock market. It will take a constitutional amendment to allow it, and that is what is on this ballot.
Kentucky already allows equity investments in its pension plan. (The fact that we are much better off than South Carolina should give pause to local opponents of Social Security private accounts, but it probably won't.)
We can take little comfort in the fact that we have less than half the red ink soaking our pension plan that South Carolina has. Choosing equities is an easy decision to make. Kentucky's decisions will be more difficult. We need to start on it now.
