Local government – Minnesota – Legislation will reduce pension liabilities, but changes are far from a cure-all

Source: Benjamin J VanMetre, Daniel Simpson, Rachel Cortez, Alexandra S. Parker, Moody’s, Sector Comment, June 26, 2018
(subscription required)

The State of Minnesota (Aa1 stable) approved legislation late last month that will change certain public pension benefits and modestly increase plan contributions by government employers and employees. The changes are credit positive for the state and its local governments because they will reduce unfunded pension liabilities and improve plan funding. Even after the changes, however, local governments across Minnesota, particularly school districts, will continue to face high pension burdens….