Increased global life expectancies and the growth in unfunded
public sector pension liabilities are reinforcing the need for retirement income and greater personal savings.
This would reduce the growth of
public sector pension liabilities by hundreds of millions of pounds over the next decade.
Not exact matches
Overall debt has now passed # 1 trillion — without counting the
liabilities associated with
public sector pensions or the Private Finance Initiative.
OECD documents also highlight the enormous unfunded
liabilities in UK
public sector pensions.
The unfunded
liability for future
public sector pensions is # 1.1 trillion and rising.
Our approach to valuing
pensions, which considers both the generosity and the risk of
pension benefits, is entirely consistent with economic theory, the way in which
liabilities of all types are valued in the private
sector,
public -
sector accounting standards in Canada and Western Europe, academic writings, and the judgments of officials at nonpartisan government agencies such as the Congressional Budget Office, the Federal Reserve, and the Bureau of Economic Analysis.
Virtually all professional economists agree that calculating the value of guaranteed
pension benefits using the assumed return on a portfolio of risky assets «understate [s] their
pension liabilities and the costs of providing
pensions to
public -
sector workers.»
While some unfunded
pension liabilities are due to market fluctuations, including sharp stock market declines in 2002 and 2008, leading economists say the most severe cases are due to politicians» failure to keep up with employers» share of
pension payments over many years (most
public -
sector workers also contribute toward their own
pensions).