Government Pension Liability Rises to $27.9 Billion
By: Florida Chamber of Commerce
“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.
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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.”
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.