"As Stockton, California inches toward the largest municipal bankruptcy since the Great Depression, many accusing fingers are pointing at public employee pensions. One finger belongs to New York City Mayor Michael R. Bloomberg. In Albany recently to lobby for more pension flexibility, he argued:
“We really are up against it… Towns and counties across the state are starting to have to make the real choices — fewer cops, fewer firefighters, slower ambulance response, less teachers in front of the classroom.”.........."At a more conservative rate used by corporations and favored by many economists, liabilities expand significantly. According to Northwestern’s Joshua Rauh and the University of Rochester’s Robert Novy-Marx, the nation’s largest municipal plans (those with more than $1 billion in assets) have collective unfunded liabilities of $383 billion. By this measure, Philadelphia will exhaust its pension funds in 2015, with Boston and Chicago not far behind in 2019."
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