Broken ARC, Broken Promises
5 Pages Posted: 4 May 2012
Date Written: May 3, 2012
It divides underfunded public pension plans into two categories those whose sponsors make the full Actuarially Required Contributions (ARC) and those who do not. While state and plan bankruptcy is being discussed, the author prefers a more incremental approach for the vast majority of plans whose sponsors make the ARC each year. However for the ones who have broken the ARC and are in deep trouble he introduces a new type of Federal Supervision under the PBGC as an alternative to Federal Bankruptcy.
Keywords: Public Pension Retirement
JEL Classification: H55, J26, J45
Suggested Citation: Suggested Citation