Will Pensions and OPEBs Break State and Local Budgets?

Source: Alicia H. Munnell and Jean-Pierre Aubry, Center for Retirement Research at Boston College, SLP#51, October 2016

The brief’s key findings are:
The analysis looks at the costs of pensions, OPEBs, and debt service for all states and the largest counties and cities.
Costs assume a 6-percent discount rate and an adequate amortization schedule, and are compared to own-source revenue.
The good news is that the total cost burden appears under control in many jurisdictions, but a handful face an enormous challenge.