The first total municipal pension default happened last week: Prichard, Ala. ran out of money stopped mailing pension checks.
Hundreds of cities could be right behind. Projections by Robert Novy-Marx and Joshua Rauh [PDF] show the average city has $15,000 per household in unfunded pension liabilities. These massive liabilities are ignored by common government accounting (see chart).
Tuesday, December 28, 2010
10 City Pensions That Will Run Out Of Money
Link HT: Newsalert
Posted by Ben Cunningham at 11:48 AM