Fixing underfunded state and local pension programs is a long-term goal that most states can accomplish with moderate, common-sense steps. A major report released from the Center on Budget Policy and Priorities outlines those steps. Here are highlights from the report:
Today’s pension shortfalls were caused in substantial part by the 2001 recession and the recent Great Recession.
Fully funding pension shortfalls immediately would be both difficult and unnecessary.
Many states and localities are already taking steps to improve pension funding.
States and localities can strengthen their pensions without causing large problems for other parts of their budgets or their economies while the economies remain weak.
[Read the full report: A Common-Sense Strategy for Fixing State Pension Problems in Tough Economic Times.]
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