Pension showdowns are brewing elsewhere, as a stock market rising to records isn’t closing funding gaps triggered by big investing losses from the 2008 financial crisis. New pension accounting rules show hundreds of billions in additional obligations.
U.S. public pension liabilities ballooned by 32.7% in the years following fiscal 2008 while assets increased only 14.4%, according to preliminary fiscal 2014 data from the National Association of State Retirement Administrators. That leaves public retirement systems with enough to cover 73.5% of future obligations as compared with 85.2% in 2008, according to the data.
|Source: The Wall Street Journal|