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Income Security: Underfunded State and Local Pensions Plans

  Premium   Download PDF Now (16 pages)
Report Type Reports and Testimonies
Report Date Dec. 3, 1992
Report No. HRD-93-9R
Subject
Summary:

Pursuant to a congressional request, GAO commented on the pension-funding practices of state and local governments, focusing on the extent to which state and local governments: (1) failed to make appropriate contributions to plans; (2) changed actuarial assumptions or funding methods in order to lower required contributions; and (3) used pension funds to pay operating expenses. GAO noted that: (1) pension plan contributions by some state and local governments fell short of actuarially required amounts; (2) in some instances, state and local governments changed actuarial assumptions to lower required plan contributions; and (3) there was no evidence that state and local governments removed funds from pension plans for operating expenses.

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