Social and Behavioral Sciences Commons^™

U.S. State Employee Pension Systems: An Investigation Into The Causes Of Unfunded Liabilities, Chuck Truesdell

MPA/MPP/MPFM Capstone Projects

Defined benefit retirement plans for state employees have come under fire, both financially and politically, following recent market volatility and subsequent losses in pension investments. Asset losses matched with liabilities that are set years in advance translate to pressures on state policymakers and plan administrators to either find ways to improve the finances of these pension systems or transition to defined contribution plans that put the financial risk on individual employees rather than the state government. Because most states are legally and contractually obligated to pay retiree benefits regardless of the pension system’s financial condition — even to the point …