”Pension plans are going broke because state and local governments assumed wildly optimistic investment returns, allowing them to promise rich retirement benefits without paying for them. The financial crisis, the recession and agonizingly slow recovery, and record-low interest rates have also depleted pension funds.”
Public Pension Fixes Can Fill Gaps and Avoid a Big Ruckus
The hullabaloo over cutting public employee retirement benefits and collective bargaining rights has died down, but the pension funding crisis hasn’t. It has gotten worse.