Municipal bond prices are tumbling and rates rising just as public borrowers face pressure to refinance deals cut during the financial crisis. At the same time, the funded status of public pension plans has declined, and states and localities will have to come up with more money to meet future...

The finances of state and local pension plans are headline news almost daily.1 Indeed, although these plans were moving toward prefunding their promised benefits, two financial crises in 10 years have thrown them seriously off course. Measured by the standards of the Government Accounting...

In the wake of the financial crisis, policymakers have been talking about shifting from defined benefit plans to defined contribution plans in the public sector. Three states – Georgia, Michigan, and Utah – have taken action, joining the 10 states that had introduced some form of defined...

State and local pensions have been headline news since the 2008 financial collapse reduced the value of their assets, leaving a substantial unfunded liabil­ity. The deterioration in the funded status of these plans raised pension costs at the same time that the ensuing recession wreaked havoc...

States and localities account for pensions in their financial statements according to standards laid out by the Governmental Accounting Standards Board (GASB). Under these standards, state and local plans generally follow an actuarial model and discount their liabilities by the long-term yield...

A widespread perception is that state-local government workers receive high pension benefits which, combined with Social Security, provide more than adequate retirement income. The perception is consistent with multiplying the 2-percent benefit factor in most plan formulae by a 35- to 40- year...

State and local pensions have been headline news since the financial collapse reduced the value of their assets, leaving a substantial unfunded liability. The magnitude of that liability depends on the interest rate used to discount future benefit promises but, regardless of the assumptions,...

Tax reform is high on the nation’s agenda. While Re­publicans and Democrats may disagree about the ex­tent to which tax increases should be part of the defi­cit reduction effort, they generally agree that a broader base and lower rates for the federal income tax would promote fairness and...

State and local pensions have been headline news since the financial collapse reduced the value of their assets, leaving a substantial unfunded liability. The magnitude of that liability depends on the interest rate used to discount future benefit promises but, regardless of the assumptions,...

State and local government pension reform has become a front-burner issue in the wake of the economic crisis, which sharply reduced funded ratios for most plans. Policymakers have responded primarily by raising employee contributions for all workers and/or reducing benefits for new workers. One...