ALEC State Pension Funds Fall Off a Cliff
"The financial crisis encountered over the past decade reveals that many state pension plans are fundamentally fawed.
Using more realistic assumptions regarding the rate of return on assets, as well as assumptions regarding the actuarial value of liabilities, it is highly unlikely that these plans will achieve actuarial balance over the amortization period.
The solution to the funding crises in state pension plans will require fundamental reform.
Everything should be on the table, including changes in benefits and increased employee contribution rates, as well as employer contribution rates.
These plans should consider replacing their defined benefit plans with defined-contribution plans for new employees."
"The financial crisis encountered over the past decade reveals that many state pension plans are fundamentally fawed.
Using more realistic assumptions regarding the rate of return on assets, as well as assumptions regarding the actuarial value of liabilities, it is highly unlikely that these plans will achieve actuarial balance over the amortization period.
The solution to the funding crises in state pension plans will require fundamental reform.
Everything should be on the table, including changes in benefits and increased employee contribution rates, as well as employer contribution rates.
These plans should consider replacing their defined benefit plans with defined-contribution plans for new employees."
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