Did the SEC and S&P Let 14 States Destroy Their Pensions?

8 Pages Posted: 11 Jun 2012 Last revised: 21 Dec 2012

Date Written: June 10, 2012


14 States have broken balanced budget clauses of their own constitutions in addition to defying the rules of pension mathematics. I contend that the ratings agencies and the SEC are enablers by allowing this partial payment culture to exist and not punishing states and localities enough for not making their Actuarially Required Contribution (ARC). The dirty little secret of at least 14 states is that politicians have misled the public as both political parties have conspired to secretly borrow $100’s of billions from their pensions.

Keywords: Public Pensions, Pension, State Retirement Funding

JEL Classification: H55

Suggested Citation

Tobe, Christopher B., Did the SEC and S&P Let 14 States Destroy Their Pensions? (June 10, 2012). Available at SSRN: https://ssrn.com/abstract=2081150 or http://dx.doi.org/10.2139/ssrn.2081150

Christopher B. Tobe (Contact Author)

Stable Value Consultants ( email )

Louisville, KY
United States

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