Commentary

State and Local Government Pension Debts Rise by $268 billion in the Third Quarter of 2015

A recent brief at the Rockefeller Institute of Government revealed that state and local government unfunded pension liabilities increased by $268 billion in the third quarter of 2015, owing to poor investment returns. That increase was equivalent to 1.4 percent of the US GDP, raising the unfunded liabilities to 9.5 percent of GDP.

The brief also offers an interesting observation: over the last 25 years, unfunded liabilities have increased by 1.4 percent or more of GDP in thirteen quarters, while they have decreased by 1.4 percent or more in only two quarters.

To read the brief, go here.

Truong Bui is a policy analyst at Reason Foundation, where he works on the Pension Integrity Project.