Broker Check
Taxpayers once again get the bill...

Taxpayers once again get the bill...

| August 14, 2017
Share |

Researchers at Boston College’s Center for Retirement Research analyzed the current status of State and Local government defined-benefit (i.e., “traditional”) pension plans across the nation.  What they found was a bit disturbing.  Despite an assuming that the plans would earn an average return of 7.6% per year, the 170 plans reviewed by analysts actually had an average return of just 0.6% in 2016.  This has dropped the average plan funding percentage to just 67.9%.  Given the underperformance with regard to investments, there remain only two viable options—increasing contributions (from governments, their workers, and/or taxpayers), or reducing pension benefits, or both.  Most observers believe that, in the end, it is taxpayers who will once again get the bill – and the shaft.

Read the Full Commentary

Share |