US Public Pensions: Pension Liabilities Rise for Most of 50 Largest Local Governments

Source: Thomas Aaron, Jessica Raab, Timothy Blake, Moody’s Investors Service, Sector In-Depth, July 24, 2015
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Pension burdens increased in fiscal 2013 for 31 of the 50 largest local governments. We define the largest governments by fiscal 2013 debt outstanding. Looking ahead to fiscal 2014 reporting, we expect moderate declines in Moody’s Adjusted Net Pension Liabilities (ANPLs) due to strong investment performance, particularly for those governments with fiscal years ending June 30.

• Overall, pension burdens moderately increased from 2012 to 2013. ….
• Discount rates in 2013 were higher than in 2012, resulting in lower ANPLs. ….
• Fiscal 2014 pension disclosures point to moderate declines in ANPL for many local governments. …..
• Pension cost and liability burdens still vary widely. ….

Moody’s: Pension Liabilities Increased for Most of the Largest Localities
Source: Naomi Jagoda, Bond Buyer, July 27, 2015
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Pension burdens increased in fiscal 2013 for 31 of the 50 local governments that had the most debt outstanding in that year, Moody’s Investors Service said in a new report. The overall increase in pension burdens for the localities in fiscal 2013 – typically from July 1, 2012 to June 30, 2013 — is moderate, the rating agency said. Moody’s adjusted net pension liabilities for the localities in the aggregate increased by 14% to $365 billion in fiscal 2013 from $320 billion the previous year. The median ANPL for the governments increased to 204% of revenues in FY-2013 from 175% of revenues in FY-2012, the rating agency said.

Pension health varies
Source: Nick Thornton, BenefitsPro, July 28, 2015

Pension liabilities for 31 of the 50 largest local government entities increased in 2013 according to a newly released annual report on the sector by Moody’s. Combined, the 50 pensions’ aggregate liabilities increased 14 percent in fiscal year 2013, from $320 billion to $365 billion….