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Now governments need to put a lot of money into the pension funds or dilute the promises or, at least for new hires, move away from old-style pensions to the 401(k)-style plans common in the private sector, or all three.
WSJ: What Sent States' Fiscal Picture Into a Tailspin?
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All told, less than half of U.S. workers are now offered any pension plan at all--traditional or 401(k)-style.
FORBES: Magazine Article
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European policy makers are considering a host of proposals to eliminate implicit government guarantees, including a new resolution regime, turning some liabilities into bail-in debt that will automatically take losses, depositor-preference regimes that would subordinate unsecured bondholders, and U.K.-style plans to ring-fence certain activities.
WSJ: Agenda: Basel III��Don't We Have Enough Problems?