At a moment a number of US public pension plans have barely recovered – if at all from the 2008 financial crisis – now to be hit with continuing economic fallout from the corona-crisis and domino effect of historic unemployment, an alarming report in FT warns that seven major public pension plans are due to deplete their assets by 2028.
“The correction in the US stock market has increased the long-term structural problems across the entire US public pension system, particularly for the weakest funds,” FT observes.
A new, detailed study attempting to forecast the near term struggles of public pensions at the Center for Retirement Research at Boston College found: “Public plans with extremely low funded ratios in 2020 may face the risk of running out of assets in the foreseeable future if markets are slow to recover,” according to researcher Jean-Pierre Aubry.
The depletion would impact many hundreds of thousands of Americans and their retirement, assuming a potential slow recovery for the US stock market. – READ MORE
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