Friday, August 17, 2012

Counting on Pension Benefits From State or Local Governments?

New rules expose bigger funding gaps for public pensions By Michael A. Fletcher, Published: August 16

[Excerpted] Already-strapped state and local governments are coming under increasing pressure to reduce pension benefits or increase taxpayer contributions that help pay for them because of new rules that would require them to report those obligations more honestly, advocates say.

The latest rules come on line from the bond-rating firm Moody’s at the end of this month. They are projected to triple the gap between what states and municipalities report they have in their funds and what they have promised to pay out to retirees. That hole would stand at $2.2 trillion....

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