This is Mary Walden with economist MW, welcoming you to the economic perspective. Today’s program looks at the status of state pensions. Mike, over 900,000 people in North Carolina receive a retirement pension from the state. Yet there has long been a concern about the ability of state pensions to meet their future obligations. What’s the current status of state pensions?
Mike: Summary Answer
- A new analysis from the Boston College Center for Retirement Research still shows issues
- State pension plans were hard hit by the drop in stock returns during the Great Recession
- And if the pension systems want to be cautious, returns on safe financial assets are still low
- Add to this the fact that the number of retirees is growing faster than the number of workers, and have a similar situation to Social Security
- Good news for NC is that our pension plan has a much, much smaller issue than many other states
- Will be a continuing challenge
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.