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Most State and Local Government Pension Contributions Go Toward Paying Off Debt, Not Funding Benefits
Reason Foundation 
[Opinion] Nov. 18, 2025 "State and local governments have been making higher pension contributions to their employees' pension funds, but not because public pension benefits have become more generous. Instead, growing debt from past underfunding of pension benefits has largely driven the increase in contribution rates. Today, the majority of contributions made to public pension systems go toward amortizing unfunded liabilities rather than funding the benefits promised to current employees." MORE >> |
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