Tag: unfunded liability
In a recent editorial, The Wall Street Journal reports on state and local pension liabilities as a percentage of state GDP and concludes that politicians have made excessive pension promises. In fact, pension costs are going up, but the question is whether the rising costs are a result of benefit generosity or of underfunding. T…
The brief’s key findings are: Connecticut’s State Employees Retirement System faces a large unfunded liability, despite recent efforts by the State to fund. A significant source of the liability is the “legacy debt” built up before the State began pre-funding its pensions in the 1970s. More recently, inadequate contributions, low investment returns (since 2000), and early…
