The Pew Charitable Trusts recently came out with their study, “The State Pension Funding Gap: 2015”. PSRS_The_State_Pension_Funding_Gap_2015 And an ugly picture it paints of state pension funds.
Here is a nice editorial from The Sacramento Bee:
Throughout California, local government and school district officials are writing new budgets and confronting rapidly rising costs of pensions.
Many have seen their costs double in the last few years, largely consuming revenue increases that the state’s expanding economy have produced. For instance, a projected $1 billion increase in school districts’ teacher pension costs in 2017-18 will more than equal projected revenue gains.
However, as the old rock song says, “You ain’t seen nothing yet.”
Lackluster earnings by pension trust funds, revised actuarial projections and impacts of benefit increases are compelling the systems to sharply increase mandatory “contributions” from public employers.