10 Cities With The Riskiest Pension Plans: Morningstar Research

 @MeaganKaym.clark@ibtimes.com
on December 05 2013 3:18 PM

Upcoming national regulatory changes are expected to dramatically alter cities' pension reporting and accounting procedures, which will likely decrease funding for city pension plans that are already running low on cash. 

The new pension standards become effective in fiscal years that begin on or after June 15, 2014, but state and local governments will likely begin adapting to the changes earlier.

With the change in standards looming, Morningstar Research has published a report on the 25 most populous cities and their pension plans. Here are 10 cities to keep an eye on:

Cities with the highest percentage of their budgets spent on pensions annually:

1. San Jose, California

Percent of City Budget Spent on Pensions: 29.7

2. San Diego, California

Percent of City Budget Spent on Pensions: 20.0

3. Phoenix, Arizona

Percent of City Budget Spent on Pensions: 19.3

4. Columbus, Ohio

Percent of City Budget Spent on Pensions: 17.4

5. Austin, Texas

Percent of City Budget Spent on Pensions: 16.2

 

Cities with the highest unfunded liabilities:

1. New York, New York

Total unfunded liability: $69.8 billion

2. Chicago, Illinois

Total unfunded liability: $19.4 billion

3. Los Angeles, California

Total unfunded liability: $7.2 billion

4. Philadelphia, Pennsylvania

Total unfunded liability: $5.1 billion

5. Boston, Massachusetts

Total unfunded liability: $2.8 billion

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