Pension Crisis Won't Be Reversed by High Returns, Moody's Says
- Base case sees net pension liabilties 15% higher by 2020
- Deeper funding gaps threaten state and local credit ratings
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Even a stock market soaring to record highs won’t rescue America’s struggling state and local pension plans.
A "best case" scenario of a cumulative 25% investment return during the 2017-2019 period will not offer a respite for chronically underfunded U.S. public pension plans, according to a Moody’s Investors Service report.