, Columnist
Pension Plans' Risky Flirtation With Private Equity
A seemingly promising strategy carries great risk.
An eye on payouts.
Photographer: Drew Angerer/BloombergThis article is for subscribers only.
The pension crisis is a slow-moving train wreck that will likely cause huge problems for many municipalities and their retirees that are banking on pension income to supplement their retirement spending needs.
Total state employee pension liabilities are estimated in the range of $3 trillion to $5 trillion, while the average funded status of the 50 state pension plans is just 40 percent to 60 percent, depending on the discount rate used to value plan assets.