Article
Defining pension options
Detroit’s bankruptcy has underscored the importance of a well-funded government pension plan. Even though a 2011 Boston College Center for Retirement Research study found that most state and local retirement plans are fiscally solvent, a few large cities, including Chicago, Philadelphia and Providence, R.I., have significantly underfunded plans and will likely have to take extraordinary measures to remain solvent.
Detroit’s bankruptcy has underscored the importance of a well-funded government pension plan. Even though a 2011 Boston College Center for Retirement Research study found that most state and local retirement plans are fiscally solvent, a few large cities, including Chicago, Philadelphia and Providence, R.I., have significantly underfunded plans and will likely have to take extraordinary measures to remain solvent. Pension contributions comprise a relatively small portion of state and local operating budgets. In fact, approximately...
