The US faces a crisis over its gaping pension funding hole. Retirement funds have less than 75% of the money needed to meet promises made to millions of public-sector workers, including teachers and policemen, according to the Public Plans Database.
Pew Charitable Trusts estimates that unfunded state pension liabilities amount to $1.4trn, while Moody's Investors Service reckons the deficit for state and local pensions could be as high as $4trn.
Some funds could face insolvency unless governments raise taxes, divert funds or persuade workers to accept reductions to their promised benefits, says Sarah Krouse in The Wall Street Journal. Extended lifespans and expensive benefits have contributed to soaring costs.
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