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Tags: fed | accounting | change | pension | obligations

Fed Accounting Change Boosts Unfunded Pension Obligations

Coin stacks with letter dice spelling out Pension
(Zerbor/Dreamstime)

Friday, 28 September 2018 11:02 AM

In case you missed it, the Federal Reserve’s quarterly Financial Accounts report last week included a change to accounting for state and local pension-fund programs.

The central bank revised its data for unfunded liabilities, applying a “projected benefit obligation” method instead of the prior “accumulated benefit obligation” approach.

With the change increasing unfunded obligations by $2.3 trillion -- more than double the previous total -- “the Fed dropped a bomb,” according to Stephanie Pomboy of researcher MacroMavens LLC, who says states will eventually need to cut spending or raise taxes to compensate.

© Copyright 2022 Bloomberg News. All rights reserved.


Personal-Finance
In case you missed it, the Federal Reserve's quarterly Financial Accounts report last week included a change to accounting for state and local pension-fund programs.
fed, accounting, change, pension, obligations
92
2018-02-28
Friday, 28 September 2018 11:02 AM
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