In the United States the Hoover institution published in 2017 a report on unfunded liabilities of state and local governments. The report shows that total unfunded pension liabilities have reached $2.85 trillion up $434 billion on 2016. However bear in mind that these official numbers in many expert’s view make unrealistic assumptions about future investment returns. The Governmental Accounting Standards Board (GASB) assumes that public pensions will achieve annual returns of 7.5% into the future. Such returns are at odds with current long-term government bonds yields that struggle to climb above 3%.
There are numerous examples of US government employees being particularly exposed to the pension deficits.
This article was attributed and provided by PG International