Bloomberg has an article about highly rated states such as Maryland, reneging on pension promises. Governors and state legislatures are cutting back on require contributions to pension plans that were designed to catch up on past under-funding. Maryland has cut its pension plan funding by 75% to use the funds for projects cut by the state’s governor.
Kansas plans on cutting pension plan contributions by $58 million to partially fill a $280 million budget shortfall. The state is also considering issuing $1 billion of pension bonds, betting that future investment returns will exceed the cost of issuing the debt.
