Municipal Pension Crisis: More Retirees That Live Longer

 

The Bond Buyer has begun the first of a four part series about municipal pension crisis.

The first article looks at the impact of increasing numbers of retirees and the fact that these retirees are living longer.  The article states that most states and large municipalities are using outdated life expectancy tables provided by the Society of Actuaries.  The 2009 U.S. Life expectancy tables were modified in 2014 to reflect the greater life expectancy.  This higher life expectancy has not been widely adopted by municipalities.

Adopting greater life expectancy assumptions will result in lower level of funding and pressure on municipal officials to increase funding or cut pension benefits.

The Bond Buyer article