Difficulties in the Public Sector
Unfunded Liabilities of State and Local Plans
Pension plans for american workers that sprang up in the prosperity of yesteryear are causing sobering second thoughts in the mid-Seventies. The problem is funding and it extends to pension plans both in private industry and government but especially to the latter. Many state and municipal governments are becoming aware they have not set aside enough funds to pay future pension costs. And in the federal government there are warnings that its pensions for civilian and military employees are rising so fast they pose a financial burden on the nation in the years ahead.
Critical scrutiny which only a few years ago focused on mismanagement and misuse of pension plans in private industry has turned ...