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Study: Ala. Pension Funds Could Run Out In Decade

A study says pension funds serving more than 335,000 Alabama state workers and retirees could run out of money in a decade if changes aren't made.
watchdog.org
A study says pension funds serving more than 335,000 Alabama state workers and retirees could run out of money in a decade if changes aren't made.

A study says pension funds serving more than 335,000 Alabama state workers and retirees could run out of money in a decade if changes aren't made.

The study released Monday was conducted by the Manuel H. Johnson Center for Political Economy at Troy State University. It says the Retirement Systems of Alabama are underfunded and rely on unrealistic expectations of 8 percent investment returns per year when calculating how much money will be available to pay future retirees.

The three state pension funds - which cover teachers, judges and state and local government workers - have $28.1 billion in assets and $42.5 billion in liabilities. There are 114,050 retirees enrolled in the program and 221,735 current workers.

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