Pension Liabilities Of Universities Projected To Exceed Capital DebtBala Murali Krishna
Like many large local governments, public universities are being weighed down by unfunded pension liabilities. At an estimated $183 billion next year, they will exceed the institutions’ total capital debt.
Moody’s reckons that aggregate adjusted net pension liabilities will increase about 40% – the same rate at which the liabilities of 50 largest local governments is growing – between fiscal year-end 2015 and fiscal year-end 2017.
Assuming bonded debt maintains its recent 8% growth, pension-related liabilities will represent 62% of total debt by the end of 2017 . . .
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