Josh Barro outlines in Newsday the lack of transparency in public pension funding accounting, which hides the true cost of long-term liabilities and makes it difficult to determine whether reform efforts go far enough.
Using New York as an example, Josh points out that the financial reports of the state's Teachers' Retirement System describe it as fully funded. But evaluating the system by private sector standards suggests that it is only 61 percent funded and that taxpayer contributions will have to increase sharply over the next several years, rising from $900 million this year to $4.5 billion by the 2015-2016 school year.
Josh is the author of a new report which recommends reforms that make it easier for lawmakers to determine the actual cost of pensions, a necessary first step in reform.
Using New York as an example, Josh points out that the financial reports of the state's Teachers' Retirement System describe it as fully funded. But evaluating the system by private sector standards suggests that it is only 61 percent funded and that taxpayer contributions will have to increase sharply over the next several years, rising from $900 million this year to $4.5 billion by the 2015-2016 school year.
Josh is the author of a new report which recommends reforms that make it easier for lawmakers to determine the actual cost of pensions, a necessary first step in reform.
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