Public Sector Pensions: How Well Funded Are They, Really?
State Budget Solutions, July 2012
28 Pages Posted: 23 Mar 2013
Date Written: July 18, 2012
This paper first describes how public employee pensions currently measure their financial health; then describes the strong consensus from economists that current accounting rules significantly understate pension liabilities and overstate pension funding levels; and finally, describes how pension financing across the country would appear using accounting rules similar to those required for private sector pensions or which are used by public employee plans in other countries.
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