Thursday, October 21, 2010

NASRA Responds to Pension Sustainability Report

On October 19, 2010, the National Association of Retirement Administrators (NASRA) issued a report titled "Faulty Analysis is Unhelpful to State and Local Pension Sustainability Efforts" in response to yet the latest report of Joshua Rauh, an assistant professor in the Kellogg School of Management at Northwestern University.

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.

Please read the NASRA report for more detail.

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