by Stephanie Kreuz, WatchDogWire:
While Detroit is not the only city to ever declare bankruptcy, it is one of the largest. It has cities taking a little more serious stock of their financial situation. And it has the Buckeye Institute taking a close look in to the city of Cincinnati’s finances. The findings are painful.
Andrew Biggs indicates in the Buckeye Institute’s new study, Worse Than You Think: Cincinnati’s Underfunded Pensions and an Analysis of Potential Reforms, that a fair market valuation (preferred by economists) of Cincinnati’s Retirement System tells a pretty grim story.
According to mainstream analysis, the typical pension system is usually less than 75% funded. Cincinnati’s pension system is estimated to be 61% funded, according to Cavanaugh Macdonald Consulting. But that number doesn’t tell the whole story.
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