Pensions

Research

The Fiscal Health of the States Jeffrey Miron, Robert Sarvis \| Feb 13, 2012 This paper examines the fiscal health of the states, focusing on two worrisome characteristics: an understatement of unfunded pension liabilities and ever-increasing expenditures, driven primarily by health care costs.	Rhode Island's Local Pension Debts Eileen Norcross, Benjamin J. VanMetre \| Nov 08, 2011 This working paper shows how Rhode Island’s state and municipal pension systems face large and growing unfunded pension liabilities and provides recommendations for reform.
From Defined Benefit to Defined Contribution Scott Beaulier \| Oct 11, 2011 America’s fiscal mess, coupled with poor management in the past and changing demographics, guarantees that public pension systems across the country will be reformed. At the margin, the case for more radical shifts from defined benefit to defined contribution plans is strong.	Accounting for the Cost of a Public Sector Worker in New Jersey Eileen Norcross, Roman Hardgrave \| Sep 28, 2011 This study focuses on public sector benefits costs in the state of New Jersey. Along with several other states, New Jersey’s pension system is badly underfunded and health care and other benefits for public sector workers are entirely unfunded.
From Defined Benefit to Defined Contribution Scott Beaulier \| Sep 26, 2011 This paper explores the current state of public pensions across the United States and addresses transition cost and capital flight concerns.	The Fiscal Health of U.S. States Jeffrey Miron \| Aug 15, 2011 This paper examines the fiscal health of the U.S. states by taking a look at state and local debt, including unfunded pension liabilities.

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Testimony & Comments

Wasteful Spending Does Not Stop at Earmarks and Overpayments

Veronique de Rugy | Feb 17, 2011

Veronique de Rugy testified before the House Committee on Oversight and Government Reform about wasteful government spending.

Research Summaries & Toolkits

Assessing the President's FY2013 Budget Proposal

| Feb 13, 2012

This policy brief takes a look at the president's FY2013 budget proposal and emphasizes the need for fundamental reform in the areas of spending, taxes, and the budget process.

Expert Commentary

Paving Over Pension Liabilities By Jason J. Fichtner, Eileen Norcross \| Jun 15, 2012 As Congress approaches the summer recess, members continue to negotiate the language in the must-pass highway transportation bill. Now Congress faces a June 30th deadline, having only been able to pass a 90-day funding extension at the end of March for the nation's transportation needs. As important as stable transportation spending is to the nation's crumbling infrastructure, this bill is not only about roads and bridges. Private corporations are using it as a vehicle to ask Congress to change how they calculate their annual pension contributions, which could create a huge unfunded liability for the American taxpayer.	Why the Federal Budget Matters By Antony Davies \| Mar 19, 2012 The U.S. credit card is maxed out, but politicians still want to go on a shopping binge.
Expand California's Pension Portfolio? By Eileen Norcross \| Feb 27, 2012 Before expanding the state's pension portfolio, first consider the reason CalPERS faces an half trillion shortfall.	FY2013 Budget: Serious Plan or 'Magic Beans'? By Veronique de Rugy, Jason J. Fichtner, Charles Blahous, Matthew Mitchell \| Feb 13, 2012 Mercatus Center scholars identify key tests to help assess whether the president’s budget is a serious plan--or just more ‘magic beans.’…
Changes to Ohio's collective bargaining needed for fiscal stability By Eileen Norcross \| Mar 02, 2011	Defined-contribution plans help define security for workers By Eileen Norcross \| Mar 01, 2011

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Charts

More Americans Dependent on Disability, Longer

Beneficiaries continue to receive awards as long as they remain disabled or until they reach the full retirement age. The data show, however, that less than 10 percent of individuals leave the disability rolls by returning to work or medical improvement. Most beneficiaries simply convert automatically to retirement benefits at the federal retirement age.

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Experts

Veronique de Rugy

Veronique de Rugy is a senior research fellow at the Mercatus Center at George Mason University. Her primary research interests include the federal budget, homeland security, taxation, tax competition, and financial privacy issues.

Jason J. Fichtner

Jason J. Fichtner is a senior research fellow at the Mercatus Center. His primary research interests include Social Security, federal tax policy, federal budget policy, retirement security, and policy proposals to increase saving and investment.

Matthew Mitchell

Matthew Mitchell is a senior research fellow at the Mercatus Center at George Mason University and the lead scholar on the Project for the Study of American Capitalism. His primary research interests include economic freedom and economic growth, public choice economics, and the economics of government-granted privileges to businesses.

Eileen Norcross

Eileen Norcross is a senior research fellow at the Mercatus Center at George Mason University. Her primary research interests include fiscal federalism and institutions, state and local governments, and economic development.

David M. Primo

David M. Primo is a senior scholar at the Mercatus Center and an associate professor of political science and business administration at the University of Rochester. His current research focuses on the value of legislative “pork” for reelection, the politics of judicial appointments, and the connection between formal models and data analysis.

Videos

Todd Zywicki Testifies on Delphi Pension Fund Bailout

Todd Zywicki | July 10, 2012

Veronique de Rugy Reveals Myths About the Debt Ceiling on Bloomberg

Veronique de Rugy | July 13, 2011

Podcasts

Joshua Rauh on Public Pensions

Russell Roberts | November 05, 2012

Joshua Rauh, Professor of Finance at Stanford University's Graduate School of Business and a senior fellow at Stanford University's Hoover Institution, talks with EconTalk host Russ Roberts about the unfunded liabilities from state employee pensions. The publicly stated shortfall in revenue relative to promised pensions is about $1 trillion. Rauh estimates the number to be over $4 trillion. Rauh explains why that number is more realistic, how the problem grew in recent years, and how the fiscal situation might be fixed moving forward. He also discusses some of the political and legal choices that we are likely to face going forward as states face strained budgets from promises made in the past to retired workers.

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Recent Events

More Media Clippings

The Fiscal Health of the States Jeffrey Miron, Robert Sarvis \| Feb 13, 2012 This paper examines the fiscal health of the states, focusing on two worrisome characteristics: an understatement of unfunded pension liabilities and ever-increasing expenditures, driven primarily by health care costs.	Rhode Island's Local Pension Debts Eileen Norcross, Benjamin J. VanMetre \| Nov 08, 2011 This working paper shows how Rhode Island’s state and municipal pension systems face large and growing unfunded pension liabilities and provides recommendations for reform.
From Defined Benefit to Defined Contribution Scott Beaulier \| Oct 11, 2011 America’s fiscal mess, coupled with poor management in the past and changing demographics, guarantees that public pension systems across the country will be reformed. At the margin, the case for more radical shifts from defined benefit to defined contribution plans is strong.	Accounting for the Cost of a Public Sector Worker in New Jersey Eileen Norcross, Roman Hardgrave \| Sep 28, 2011 This study focuses on public sector benefits costs in the state of New Jersey. Along with several other states, New Jersey’s pension system is badly underfunded and health care and other benefits for public sector workers are entirely unfunded.
From Defined Benefit to Defined Contribution Scott Beaulier \| Sep 26, 2011 This paper explores the current state of public pensions across the United States and addresses transition cost and capital flight concerns.	The Fiscal Health of U.S. States Jeffrey Miron \| Aug 15, 2011 This paper examines the fiscal health of the U.S. states by taking a look at state and local debt, including unfunded pension liabilities.

Paving Over Pension Liabilities By Jason J. Fichtner, Eileen Norcross \| Jun 15, 2012 As Congress approaches the summer recess, members continue to negotiate the language in the must-pass highway transportation bill. Now Congress faces a June 30th deadline, having only been able to pass a 90-day funding extension at the end of March for the nation's transportation needs. As important as stable transportation spending is to the nation's crumbling infrastructure, this bill is not only about roads and bridges. Private corporations are using it as a vehicle to ask Congress to change how they calculate their annual pension contributions, which could create a huge unfunded liability for the American taxpayer.	Why the Federal Budget Matters By Antony Davies \| Mar 19, 2012 The U.S. credit card is maxed out, but politicians still want to go on a shopping binge.
Expand California's Pension Portfolio? By Eileen Norcross \| Feb 27, 2012 Before expanding the state's pension portfolio, first consider the reason CalPERS faces an half trillion shortfall.	FY2013 Budget: Serious Plan or 'Magic Beans'? By Veronique de Rugy, Jason J. Fichtner, Charles Blahous, Matthew Mitchell \| Feb 13, 2012 Mercatus Center scholars identify key tests to help assess whether the president’s budget is a serious plan--or just more ‘magic beans.’…
Changes to Ohio's collective bargaining needed for fiscal stability By Eileen Norcross \| Mar 02, 2011	Defined-contribution plans help define security for workers By Eileen Norcross \| Mar 01, 2011