Tag: unfunded liabilities
The brief’s key findings are: The inclusion of “legacy debt” – unfunded liabilities from long ago – with current liabilities impedes effective pension policy. A new approach would separate legacy debt from other unfunded liabilities in order to: spread the legacy cost over multiple generations; and properly identify fixed vs. variable costs. It would also…
Legacy debt — leftover costs from the startup of retirement programs — is important not only when considering policy changes for Social Security but also for state and local pension plans. In the case of Social Security, the required payroll tax rate to fund promised benefits is high because we gave away the trust fund…
