Kicking the Can: Concealing Budget Shortfalls by Underfunding Pensions
A Video Infographic for Hoover Institution
Pension funds are using unrealistic assumptions about their future pension returns, concealing shortfalls that will eventually have to be paid for with benefit cuts or higher taxes. Politicians are promising generous pensions without adequately funding them, requiring risky investments. When investment returns don’t materialize, taxpayers have to cover the shortfall.