The Political Economy of Public Pensions

Public Pensions In The United States Face An Impending Funding Crisis In The Wake Of The Financial Crisis And The Covid-19 Recession. Many Cities And States Will Struggle To Meet These Growing Obligations Without Major Cuts In Government Services Reneging On Pension Promises Or Raising Taxes. This Element Examines The Development Of The Pension Crisis Through The Lens Of Political Economy. We Analyze The Knowledge And Incentive Problems Inherent In The Institutional Structure Governance And Accounting Of Public Pensions. We Conclude By Offering Several Institutional Governance And Reporting Reforms To Address The Pension Funding Crisis.