At this event, panelists will address pension reform challenges by presenting the results of three research papers commissioned by AEI through a generous grant from the Smith Richardson Foundation.

Andrew Biggs finds that the real value of unfunded pension liabilities for Missouri's five largest pensions is close to $54billion - far higher than the $11.1 billion officially reported. This liability, which amounts to nearly $9,000 for every man, woman, and child in the state, potentially can make all other budgetary issues facing the state look small in comparison. 

This event will feature a presentation from Carl DeMaio, who — as a member of the San Diego City Council — championed the pension initiative and now seeks to apply its lessons nationwide.

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GASB rules cause U.S. public pensions both to vastly understate their true liabilities and to take excessive investment risk, putting in danger both government budgets and the economy as a whole. With pension liabilities breathing down the necks of state and local governments around the nation, it is time for bond rating agencies to expose what GASB rules sweep under the rug. 

Pennsylvania, along with other states, faces large unfunded pension liabilities due to the structure of DB plans. The gravity of the problem is obscured by specialized accounting rules applied to these pensions. These discrepancies could be addressed by switching to accounting practices followed by the private sector and the rest of the world.

Only once the true costs of public pension plans are understood can policymakers decide whether reduced benefits or increased taxpayer and employee contributions are appropriate.

The financial health of defined benefit pension plans for state and local government workers is a matter of concern for elected officials, taxpayers and the financial markets, all of whom worry about governments' long-term ability to meet their financial obligations. These pension plans have come under increased scrutiny as funding levels have dropped and required contributions have risen.

Because of accounting differences between the public and private  sectors, public defined benefit pension plans contribute far less for each dollar of future pension benefits than private plans do, potentially skewing comparisons of overall compensation.

An analysis of why current public sector pension accounting standards understate liabilities and encourage excessive risk-taking