Delaware's Public Employees' Retirement System: A Complete and Transparent Accounting
34 Pages Posted: 6 Sep 2018
Date Written: February 2013
Current government accounting standards result in US public pension plans understating the size of pensions promised to workers. The result is that state plans are more deeply underfunded than is recognized. Delaware reports an overall funding ratio of 81 percent, but on a market-valuation basis average funding of its plans is 40 percent. Accounting reforms contained in GASB 67 meant to correct the measurement problem are likely to only increase the amount of risk plans take with pension assets.
Keywords: Delaware, Delaware Public Employees’ Retirement System, public sector pensions, discount rate, DPERS, pension assets, Delaware pension system, liability matching portfolio, alternative investments
JEL Classification: H75, H72, J26, G11
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