Local Governments Find Themselves Struggling with Ballooning Pensions
Thursday, March 19, 2009
Maureen Cavanaugh : Since most working people these days have just one pension plan, called Social Security, the trials and tribulations of faltering pension plans for city and county workers usually only generates grumbles. But the city of San Diego has already found out how the problems of public-sector pension plans can trickle down to affect city services. The pension underfunding scandal of a few years back resulted in San Diego losing a good credit rating and being unable to borrow money for public projects for several years.
The problems facing city and the county pension plans now are a little different. Because those funds are invested, and because investments are taking such a big hit on Wall Street, the pension funds have lost money and may need a bigger contribution of public monies than anticipated.
- Alison St John , KPBS reporter who's been producing the multimedia series My Hometown Accounts .