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: The Buck Stops Here

New Report on Teacher Pensions

By Stuart Buck, Esq.

Yesterday, the Manhattan Institute and the Foundation for Educational Choice released a report written by me and Josh Barro. The title: "Unfunded Teacher Pension Plans: It's Worse Than You Think." The main finding: According to the fifty-nine funds? own financial statements, total unfunded liabilities to teachers?i.e., the gap between existing plan assets and the present value of benefits accrued by plan participants?are $332 billion. But according to our more conservative calculations, these plans? unfunded liabilities total about $933 billion.In addition, we have found that only $116 billion, or less than one quarter, of this $600 billion discrepancy is attributable to the stock market drop precipitated by the 2007 financial crisis. The Dow Jones Industrial Average would have to nearly double overnight to make up for the present underfunding of these plans...continue to full post

Full post as published by The Buck Stops Here on April 14, 2010 (boomark / email).