Source: Moody’s, Sector In-Depth, December 14, 2017
Adjusted net pension liabilities (ANPLs) rose in fiscal 2016 for 42 of the 50 largest local governments, ranked by debt outstanding. Pension pressures will remain elevated due to coming ANPL spikes in 2017, even with moderate declines expected to follow in fiscal 2018. Most governments are contributing insufficient amounts to contain growth in net liabilities, and some are exposed to sizeable investment losses in the event of a market downturn. Retiree healthcare and other post-employment benefit (OPEB) liabilities are also significant for a handful of governments, and will likely increase due to lower discount rates under new accounting….