Pension Funds Underfunded
A new study reports that the Retirement Systems of Alabama are underfunded. The study, released today and conducted by the Manuel H. Johnson Center for Political Economy at Troy State University says the systems are depending on unrealistic expectations. The pension funds serving more than 335,000 Alabama state workers and retirees could run out of money in a decade if changes aren’t made. The three state pension funds – which cover teachers, judges, and state and local government workers –are running at 8 percent investment returns per year. The funds have $28.1 billion dollars in assets and $42.5 billion dollars in liabilities.