See 10 cities that have high unfunded pension liabilities, according to a report from Center for State and Local Government Excellence.
Local governments that participate in cost-sharing state employee retirement plans face pressure to manage their pension plan liabilities as a result of Governmental Accounting Standards Board standard 68. The new rule requires municipalities participating in chost-sharing plans to report their share of a state’s net pension liabilities.
The Center for State and Local Government Excellence measured 92 cities that participate in cost-sharing plans that are affected by GASB 68. The center estimates that the following cities will see the largest increase in unfunded liability as a percentage of revenue after GASB 68.
10. Saginaw, Mich.
Unfunded liability as a percentage of revenue: 190%
9. St. Paul, Minn.
Unfunded liability as a percentage of revenue: 199%
8. Cincinnati
Unfunded liability as a percentage of revenue: 216%
7. Las Vegas
Unfunded liability as a percentage of revenue: 234%
6. Billings, Mont.
Unfunded liability as a percentage of revenue: 245%
5. Charleston, W.Va.
Unfunded liability as a percentage of revenue: 261%
4. Newark, N.J.
Unfunded liability as a percentage of revenue: 284%
3. Portland, Ore.
Unfunded liability as a percentage of revenue: 284%
2. Springfield, Mass.
Unfunded liability as a percentage of revenue: 315%
1. Chicago
Unfunded liability as a percentage of revenue: 359%
Source: Pensions & Investments
