Government Pension Liability Rises to $27.9 Billion

“State analysts agreed Thursday to lower the expected rate of return on Florida’s $154 billion pension fund, which will put more pressure on lawmakers as they craft a new state budget.

The decrease from a 7.6 percent return to 7.5 percent will require an additional $124 million in state funding in the 2018-2019 budget to keep the pension fund financially sound, according to the state’s long-range fiscal analysis.

It’s the fourth year in a row that analysts, meeting at the Florida Retirement System Actuarial Assumption Conference, have lowered the assumed rate of return on the pension fund, which was 7.75 percent in 2013.

. . . .

The unfunded liability rises to $27.9 billion with a 7.5 percent rate of return, with the ability to pay 84.4 percent of future obligations.”

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Florida’s unfunded pension debt could lead to problems from credit downgrades to bankruptcy, just as it has in other states. Join the Florida Chamber’s pension reform efforts by emailing CEmmanuel@FLChamber.com.