Forensic analysis of pension funding

Aubry, Jean-Pierre. “Forensic analysis of pension funding”. State and Local Pension Plans 83, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, April 2022. http://hdl.handle.net/2345/bc-ir:109416.
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Abstract

The brief's key findings are: (1) State and local policymakers face a growing pension cost burden, but often lack understanding of the root causes. (2) One underappreciated cause is "legacy debt" -- unfunded liabilities accumulated long ago, before plans adopted modern funding practices. (3) Legacy debt still exists today because historical unfunded liabilities were ultimately paid in full using some of the money intended to fund later benefits. (4) In a sample of plans with particularly low funded ratios, legacy debt averaged more than 40 percent of unfunded liabilities. (5) A failure to recognize the legacy debt has provided misleading information about benefit generosity, hindering progress toward effective solutions.

Title
Forensic analysis of pension funding: A tool for policymakers
Author
Aubry, Jean-Pierre
Center
Center for Retirement Research
Genre
report
Date Issued
April 2022
Publisher
Center for Retirement Research at Boston College
Series Title
State and Local Pension Plans
Series Number
83
Persistent Link
http://hdl.handle.net/2345/bc-ir:109416
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
State and Local Pensions

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