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What's the Pension Burden on State Budgets: $4 Trillion? $10 Trillion?
Cato Institute Link to more items from this source
[Opinion]
Oct. 5, 2014
"Most financial economists think that the discount rate used in official valuations of government pension liabilities is too high, or too optimistic. When [the Center for Retirement Research] used a lower discount rate of 4 percent instead of the average official rate of 7.7 percent, the value of unfunded state and local pension liabilities skyrocketed to $3.8 trillion.... [One commentator] argues even that is too conservative as it only includes currently accrued pension costs. He estimates that the funding gap for accrued benefits plus future accruals under today's generous pension rules is about $10 trillion."

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