Public Pensions Face Underfunding Crisis

Two professors of finance are giving a sharp rap on the knuckles to Philadelphia, Boston, Chicago and other major cities. Their warning: Better fix your pension problems fast. An analysis by Robert Novy-Marx of the University of Rochester and Joshua Rauh of the Kellogg School of Management finds that public pension plans for America's 50 biggest cities and counties are underfunded by $382 billion--or $14,000 for every household in those same cities. Some of the biggest plans may run out of...Full Story
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