The sustainability of state & local pensions

Sheiner, Louise. “The sustainability of state & local pensions”. Issue in Brief 23-8, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, April 2023. http://hdl.handle.net/2345/bc-ir:109762.
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Abstract

The brief's key findings are: (1) Many experts favor full prefunding of state and local pensions to maintain fiscal sustainability, which means big contribution hikes. (2) This analysis explores an alternative: stabilizing pension debt as a share of GDP. (3) Under current contribution rates, baseline projections show no sign of a major crisis in the next two decades even if asset returns are low. (4) Yet, many plans will be at risk over the long term of exhausting their assets, so action will be needed. (5) Plans can reach a sustainable footing by stabilizing their debt-to-GDP ratio, with much smaller contribution hikes than under full funding.

Title
The sustainability of state & local pensions: A public finance approach
Author
Sheiner, Louise
Center
Center for Retirement Research
Genre
report
Date Issued
April 2023
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
23-8
Persistent Link
http://hdl.handle.net/2345/bc-ir:109762
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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