
The Economics of Pension Obligation Bond Financing a Double Edged Sword Treasurer Ca Form
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People also ask
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What is the pension fund deficit in California?
It should surprise no one that California has the most pension debt – by far – compared to all other states, at nearly $250 billion. No other state even comes close.
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What is a pension obligation bond?
Pension obligation bonds (POBs) are taxable bonds that some state and local governments have issued as part of an overall strategy to fund the unfunded portion of their pension liabilities by creating debt.
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What is the pension debt in California?
San Francisco faces a staggering $7 billion. California's total unfunded pension liabilities are an eye-watering $250 billion. At the heart of California's pension crisis are “defined benefit” retirement programs.
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Are California state pensions in trouble?
A recent CalMatters report reminds us the state never has gotten its pension debt under control and that Gov. Gavin Newsom and the Legislature keep making the problem worse: "More generous-than-expected raises for California state workers are nudging up the cost of public employee pensions."
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Which state has the worst pension debt?
Fitch Ratings issued a report comparing the pension debt in each state to personal income. Connecticut had the highest ratio, at 23 percent, while Tennessee was the best at 1 percent. Illinois' pension debt compared to personal income is the second worst in the nation.
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What is California's pension debt?
San Francisco faces a staggering $7 billion. California's total unfunded pension liabilities are an eye-watering $250 billion. At the heart of California's pension crisis are “defined benefit” retirement programs.
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