Tag: state and local
The brief’s key findings are: What rate to use to discount public pension liabilities is a hot topic. The Government Accounting Standards Board recommends the estimated return on pension assets – about 8 percent. Economists generally argue for a riskless rate – about 5 percent. Reducing the discount rate would raise the unfunded liability by…
The brief’s key findings are: State and local plans, which were headed toward full funding, were knocked off track by the financial crisis. Their funding ratio dropped from 84 percent in 2008 to an estimated 78 percent in 2009. Funding will likely continue to decline to 72 percent by 2013. Reversing this decline will b…