Understanding Assets and Liabilities (Lessons from the Hoover Policy Boot Camp) | Ch 2

State and local governments are making overly optimistic assumptions about the returns their pension funds will make, allowing them to set aside fewer assets than they should in order to pay for their pension obligations. As a result, shortfalls mean that taxpayers will have to pay more or that much-needed public services will have to be cut.

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Click below to watch the other videos in this series.

Intro:
Chapter 1:
Chapter 2:
Chapter 3:
Chapter 4:

Additional resources:

Watch the five-part animated video series based on Josh Rauh’s research on the vast underestimation of public pension liability to gain insight into the hidden debts the next generation will face, available here

In “Hidden Debt, Hidden Deficits: 2017 Edition,” Joshua D. Rauh details the issues surrounding the pension system and the role of governments in increasing liabilities and deficits by means of their pension system. Available here:

In “A Tale of Six Cities: Underfunded Retiree Health Care,” Rauh and Pozen analyze the retiree health-care systems of six American cities: Boston, Minneapolis, Pittsburgh, San Francisco, San Antonia, and Tampa. They also outline a broad variety of reasonable measures that cities could adopt to materially reduce their long-term OPEB liabilities. Available here:

“The Public Pension Crisis” is an essay excerpted from a Hoover report by Joshua Rauh, “Hidden Debt, Hidden Deficits: How Pension Promises Are Consuming State and Local Budgets.” Available here:

In “Pension Fund Board Composition and Investment Performance: Evidence from Private Equity,” Rauh, along with Aleksandar Andonov and Yael V. Hochberg, examines the governance of public pension funds and its relationship to investment performance. Available here:

In “A Few Trillion Short,” Rauh reveals the government debt owed to public employees, available here:

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