Monday, April 12, 2010
Scary Pension Stuff
Great summary of scary public pension data here, with particular attention to the new American Enterprise Institute survey showing a $3 trillion shortfall; also a Stanford study that takes the official numbers and undertakes to adjust for risk. Shorter AEI: be glad if you are not in Illinois, Indiana, Connecticut (no kidding?), Oklahoma. Grand total overall funding ratio: 43 percent. Best: Washington state and (again, no kidding?) District of Columbia teachers. California public employees appear to have the biggest gross-number shortfall, but in ratio terms, they are actually a bit above the median (at 48 percent). I can't find in AEI: University of California, which claims to be pretty near fully funded, although the risk-adjusted Stanford study grades them down to 59.3 percent.