Pension Woes Mounting?
My "pension doom ahead" folder is bursting with clips lately. E.J. McMahon, writing in today's WSJ (paid subsc), argues that public pension ...
My "pension doom ahead" folder is bursting with clips lately.
E.J. McMahon, writing in today's WSJ (paid subsc), argues that public pension funds around the country are hiding as much as $1 trillion in future liabilities by using optimistic actuarial assumptions. McMahon believes that the 8 percent rate of return many public funds assume they'll make is too rosy. "If private-sector accounting standards were applied to these systems," he writes, "they would all look much worse."
Meanwhile, yesterday's NY Times noted that NYC's reportedly sound pension fund suddenly goes $49 billion in the hole if you tweak a few actuarial assumptions. (A previous story foretold pension problems around the U.S.).
The undercurrent in all these stories is that there are more cases of San Diego-itis out there. Are they right?
Join the Discussion
After you comment, click Post. You can enter an anonymous Display Name or connect to a social profile.
The Week in Public Finance: Moody About Ratings, the Worst-Funded Pension and Data Disappointment1 hour ago
Some States Call for Bigger Cuts in Greenhouse Gas Emissions5 hours ago
Jeb Bush’s Medicaid Fix: More Choices, Fewer Benefits?5 hours ago
Ex-Virginia Lawmaker Vows to Marry the Teenager He Got Pregnant (and Run for Senate)6 hours ago
6 Baltimore Police Officers Indicted in Freddie Gray's Death6 hours ago
Judge Legalizes Gay Marriage in Alabama, But Not Yet6 hours ago