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NCPERS Publishes Report on Closing Public Pension Funding Gaps

On September 15, 2020, the National Conference on Public Employee Retirement Systems (NCPERS) published its report, Ten Ways to Close Public Pension Funding Gaps.  The research report explores ten different policy options intended to help close public pension funding gaps.  According to NCPERS, “Solutions can have more staying power and impact if they address underlying, structural fiscal issues and tackle imprudent approaches to allocate state and local government revenues, including pension contributions.”

The report presents some of the policy options that stakeholders of public pensions may want to consider as they face funding challenges, such as:

  • Exploring a New Approach to Limited Pension Obligation Bonds;
  • Exploring Actions of the Federal Reserve Bank;
  • Exploring Bridge Loans to Increase Liquidity;
  • Securitizing Public Assets;
  • Exploring Dedicated Revenue Stream;
  • Establishing a Stabilization Fund;
  • Exploring Monthly Employer Contributions;
  • Exploring Consolidation;
  • Exploring Auto-triggers; and
  • Reforming Revenue Systems and Closing Tax Loopholes.

The report concludes, “These policy options are generic in nature. They are not recommendations, but they are a starting point for developing alternatives that reflect the needs and circumstances of individual pension systems and the communities in which they reside.  Each plan is unique and must explore, in consultation with experts, policy options that best fit its needs.”

The report is available here.