Smart Talk: Municipal pensions underfunded by billions
What to look for on Smart Talk Tuesday, January 20, 2015:
More than 500 Pennsylvania municipalities’ pension funds are considered “distressed” because they’re funded at less than 90%. Some Pennsylvania cities, boroughs, and townships currently have pension funds at lower than 50%.
State law impacts public employees’ ability to negotiate their contracts, making this issue of particular concern to lawmakers in Harrisburg.
Last week, Pennsylvania Auditor General Eugene DePasquale announced that in total Pennsylvania’s municipal pension funds have a $7.7 billion liability.
Legislation is expected to be proposed this year that will seek to eliminate some of the liability over the long term.
Richard Schuettler
Solutions to the funding shortage as well as their potential outcomes involve several options. To explain how Pennsylvanians in municipal service and the communities who depend on them might be affected, Smart Talk features Pennsylvania Municipal League Executive Director Richard Schuettler.
