Pensions might look like a pot of gold to politicians right now, but they should go follow another rainbow if they want extra funds to pay state bills. Public pension funds need to stay right where they are.
Public pensions are in a good place. A recent study from NCPERS found that pension funding levels went up again in 2016, to an average of 76 percent. The Center for Retirement Research at Boston College noted similar trends and expects average funding levels to approach 77-81 percent by 2018. Pensions have weathered the 2008 economic crisis, as they’re designed to do. But healthy pension systems now face another challenge with local governments.