Many Massachusetts residents know that public pension liabilities pose a serious fiscal threat. The Massachusetts Taxpayers Foundation reminds everyone that the unfunded retiree health care liabilities of cities and towns, which now stands at $30 billion, is more than double the unfunded pension liability.
A report this month from the Massachusetts Taxpayers Foundation, a business-oriented oversight group, underlines the severity of the problem across Massachusetts. Pension costs and health care for current and retired municipal employees continue to squeeze local budgets: Those costs grew 23 percent from 2007 to 2013.
“A variety of factors account for this reality, including legislation to enhance benefits and provide early retirement incentives,” the report said. The MTF's report also noted that the retirement systems had failed to achieve what it called “the 8 percent or 8.25 percent target for annual earnings on pension assets.”