Posts Tagged ‘pension’

Liberal-run Kansas Senate rejects 401(k) reform for $8 billion under-funded pension system

Friday, May 4th, 2012

Kansas City Star.

Hoover Institute: Teacher Retirement Benefits

Saturday, March 7th, 2009

Hoover Institute:

The vast majority of teacher pension plans are not fully funded. This means that contributions include both the “normal cost” of pension liabilities accruing to current employees and the legacy costs of amortizing unfunded liabilities accrued previously (due to a variety of reasons, including the original pay-as-you go nature of most plans, as well as unfunded benefit enhancements over the years). In theory, if the actuarial assumptions hold true going forward and no new benefits are enacted, the amortization costs will eventually disappear (after 30 years, under a typical funding schedule), in much the same way that a homeowner’s monthly expenses decline when the mortgage gets paid off.