2/13/2015 – New public pension accounting rules raise red flags (Reuters)

Feb 17, 2015 Comments Off by

New accounting rules for public pensions are exposing the damage done by U.S. states, including New Jersey, that have failed to adequately fund their retirement systems, according to a report to be released by Fitch Ratings on Friday.With the first wave of pensions beginning to issue financial statements under the new rules, the impact of underfunding becomes clearer, the Fitch report shows.The Governmental Accounting Standards Board rules, required for retirement systems for fiscal years ending after June 15, 2014, for the first time mandate that pension funds disclose when benefit payouts would exceed projected assets – or their so-called “depletion date.”

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Financial Landing 2015

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