Thursday, October 21, 2010

LASERS Responds to Pension Sustainability Report

In response to continuing reports in the media about the sustainability of public pension systems issued by Joshua Rauh, assistant professor in the Kellogg School of Management at Northwestern University, LASERS is issuing a list of points that must be considered in this ongoing debate.

Rauh has been repeating his strained analysis of public pensions for months now, even listing Louisiana in the top ten states of pensions that will run out of money. Nothing could be further from the truth. Rauh fails to recognize that since a 1987 Constitutional Amendment was passed, Louisiana has been making annual debt payments to retire the initial unfunded accrued liability of the system by 2029. And, in 2009, the Louisiana Legislature revised the debt payment schedule, reducing the liability by $500 million.

In addition, the Ntional Association of Retirement System Administrators (NASRA) has issued its own report on this issue.

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