WSJ.com, September 22, 2009 — Public pensions were good shape before the financial crisis hit. In the wake of the market downturn, state and local officials are examining their plans to ensure continued sustainability for the next 50 years.
Beth Almeida, NIRS executive director says that public pensions were “in really good shape” before the crisis hit, but administrators are reviewing plans. “They had plenty of money to pay for benefits for decades,” Almeida said. And despite the market’s volatility, there have been some cool heads, she said.
“What we are really seeing around the country are not knee-jerk reactions to dramatic events. You are seeing a more deliberative reaction,” Almeida said. “The public pensions have been through market cycles before. They know that they are going to have some good times and some bad times.” Read the full story here.