State and Local Public Pensions - Let The Truth Be Heard

[flintauqua]

National League of Cities blog article about GAO's study of state and local government pension plans:

http://citiesspeak.org/2012/03/07/state-and-local-public-pensions-let-the-truth-be-told/

Last two paragraphs:

"So what does this tell us? It tells us that public pensions are generally in good shape, able to meet their obligations through 2022, and that most public pensions are making the kinds of changes they need to make in order to be sustainable long after 2012. It also tells us that statements to the effect of the imminent demise of public pension plans, or that the federal government will have to step in and rescue state and local public pension plans are totally bogus and have no basis in reality.

From where we sit at NLC, the news from the GAO is very good. It doesn't mean that cities and towns should sit back and ignore the ever increasing liabilities they face with regard to their pensions; it does not mean that reforms are not necessary; and it does not mean that contribution levels should not be increased. All of those things may be necessary over the next ten years. But it does mean that in general our elected officials can be thoughtful, methodical, and careful as they try to generate long-term solutions. And it also means that the doomsayers who predicted that public pensions were about to fail and that the federal government would have to step in with a multi-trillion dollar bailout and were so prevalent just a year ago can begin to focus on real issues that will matter to the future of this nation."