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August 2013 » Bridging the Government Pension...
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Apostolou Barbara, PhD, CPA, CGMA, and G. Apostolou Nicholas, DBA, CPA, CGMA, and Jack W. Dorminey, PhD
For years, many observers have expressed concern about whether states will be able to meet their public employee retirement obligations. This debate has assumed greater urgency as state governments face increasingly serious fiscal challenges. As reported by the Wall Street Journal, almost every state (45 since 2009) has made cuts to public employee pensions (“Pension Crisis Looms Despite Cuts,” Michael Corkery, Sept. 22–23, 2012, p. A1); however, these steps have failed to significantly reduce the gap between what state governments owe and the assets set aside in their retirement plans.
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