Cities’ Retirement Costs to Surge as Pensions Take Market Beating
- Gains for top US cities may be erased, more investment needed
- San Jose, Los Angeles, and Chicago have highest pension costs
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Cities will likely have to increase retirement contributions as public pension returns are battered by historically poor financial markets, according to a report released Monday by S&P Global Ratings.
“S&P Global Ratings anticipates that market declines in 2022 and the threat of a recession will likely lead to the need for increased future contributions, in most cases,” analysts led by Stephen Doyle wrote in a report. They said that the positive market returns seen in 2021 have already been, or will be “erased” this year.