Delaware's Public Employees' Retirement System: A Complete and Transparent Accounting

34 Pages Posted: 6 Sep 2018

See all articles by Eileen Norcross

Eileen Norcross

George Mason University - Mercatus Center

Date Written: February 2013

Abstract

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

Suggested Citation

Norcross, Eileen, Delaware's Public Employees' Retirement System: A Complete and Transparent Accounting (February 2013). Mercatus Working Paper, No. 13-03. Available at SSRN: https://ssrn.com/abstract=3245328 or http://dx.doi.org/10.2139/ssrn.3245328

Eileen Norcross (Contact Author)

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States
703-993-4930 (Phone)

HOME PAGE: http://https://www.mercatus.org/eileen-norcross

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