Tag: pension debt

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Actually, sustainability could likely be achieved by stabilizing pension debt. The Center’s most recent issue brief makes a strong case for shifting the focus of fiscal sustainability for state and local pension plans from full funding to stabilizing their pension debt as a share of the economy.  While full funding is tidy in the sens…

American flag flying over government building in city, blue sky and clouds

The brief’s key findings are: The market crash has hurt public pensions, and quick fixes aren’t feasible because: pension cuts for new hires take time to add up; and tax revenues have been hit hard by the recession. Fortunately, most plans do not face a liquidity crisis. Years to exhaustion depend on investment returns and…