If you are between the ages of 25 and 45, there’s a stream of public debt bleeding from our generation (i.e., baby boomers) to yours (i.e., Gen Xers and Millennials).
Let’s get the politically correct disclaimer out of the way at the front end. There are some reasonably-managed, reasonably-funded public pension funds.
Unfortunately, it has become clear in recent years that an unacceptable number of public pension funds are not well-managed and well-funded. That’s the conclusion from some of the nation’s most respected actuaries and other public pension plan professionals, who concluded that, “…the financial condition of public pension trusts has weakened during the last fifteen years, while its exposure to future financial and other exposure risks has increased, perhaps materially.” (Society of Actuaries Blue Ribbon Panel on Public Pension Plan Funding: Summary of Recommendations)
The experts say that their troubling conclusion is supported by evidence of, “…self-reported funding ratios, the history of sponsors’ payment of recommended contributions, greater levels of investment risk taking, and funding analyses that may not have adequately captured the changing economic outlook…”