The impact of pensions on state borrowing costs

Munnell, Alicia Haydock, Jean-Pierre Aubry, and Laura Quinby. “The impact of pensions on state borrowing costs”. State and Local Pension Plans 14, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, February 2011. http://hdl.handle.net/2345/bc-ir:104202.
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Abstract

The brief's key findings are: (1) Both public pensions and municipal bonds are in the headlines. (2) An important question is how pensions affect municipal bond rates. (2a) Our analysis of 37,500 bond issues found that pensions raise rates by a modest 3-7 basis points. (2b) However, if pension costs rise as a share of state budgets, this impact could increase in the future. (3) Interestingly, pensions do not appear to have an impact on bond ratings.

Title
The impact of pensions on state borrowing costs
Author
Munnell, Alicia Haydock
Aubry, Jean-Pierre
Quinby, Laura
School
Carroll School of Management
Discipline
Finance
Center
Center for Retirement Research
Genre
report
Date Issued
February 2011
Publisher
Center for Retirement Research at Boston College
Series Title
State and Local Pension Plans
Series Number
14
Version Identification
Version of record.
Persistent Link
http://hdl.handle.net/2345/bc-ir:104202
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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