Andrew Biggs on States Underfunded Pension Funds
Andrew Biggs (a former Social Security analyst and Assistant Director of the Cato Institute’s Project on Social Security Choice) offers his perspective on the serious problem of States with underfunded pension funds. The problem is one of solvency in which liabilities exceed the states assets. He has proposed that states change the way they report their funds accounting by using market valuation rules to give a truer picture of the unfunded liability. Some of these pensions are being funded now in riskier equities versus more stable bond offerings. Since these pensions are guaranteed, many taxpayers do not realize that they will be on the hook to make up for any shortfall. (listen to podcast below for full story)
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In: Business Stories · Tagged with: Accounting, Andrew Biggs, Assets, Assistant Director, Bond Offerings, Cato Institute, Hook, Liabilities, Market Valuation, Pension Funds, Pensions, Perspective, Salary Information, Shortfall, Social Security, Social Security Analyst, Solvency, Taxpayers, Unfunded Liability, Valuation Rules
