Underfunded State and Local Pensions Plans
HRD-93-9R: Published: Dec 3, 1992. Publicly Released: Jan 4, 1993.
- Full Report:
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.