JPMorgan: Illinois and New Jersey underfunded pensions “are practically irreversible”

A new report written by analyst Michael Cembalest at J.P Morgan discusses on going project entitled “The ARC and the Covenants”-ARC standing for “Annual Required Contribution”- which sole purpose is to assess unfunded pension and retiree health care obligations of US states. The current assessment explains that while “many states have ratios that are manageable…there are a few states with sever problems.” In fact, the report discusses the notion that Chapter 9 legislation for states should consider an expansion in light of current analysis. The chapter 9 law being the provision to allow for state of municipal bankruptcy.   Q3…