'Day of Reckoning' Expected for Pennsylvania Public Pension Plans

Summary


Pennsylvania could be headed in the wrong direction with proposals to reduce contributions to its state and school pension funds to balance the budget, a study on public pensions suggests.

A recent Boston College report, commissioned by the Center for Excellence in State and Local Government, studied 126 large public pension funds. It concluded most will take years to recover from investment losses incurred in 2008 and warned underfunding pension funds to make ends meet is not the answer.

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Extract


'Day of Reckoning' Expected for Pennsylvania Public Pension Plans

"States and localities should try to pay their full (annual recommended pension contribution) so they don't fall farther behind," said Alicia Munnell of the Boston College Center for Retirement Excellence.

P...

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