Toward a more ethical system of state and local government retirement funding

Bibliographic Data

ID20201560
AuthorsDaniel P Mahoney (University of Scranton, corresponding author)
Year2002
Volume14
Issue2
Pages197-224
Publication date2002-03-01
Open AccessYes
TypeARTICLE
VenueJournal of Public Budgeting Accounting & Financial Management (JOURNAL)
Journal identifiersISSN: 1096-3367 • E-ISSN: 1945-1814
PublisherEmerald (PUBLISHER)
DOI10.1108/jpbafm-14-02-2002-b003
OpenAlexW2773479866
LanguageEN
Citations received2
References cited11

The deferred nature of retirement benefits provides public officials with a means of postponing to later years the retirement financing burden. This practice is aided by the fact that the Employee Retirement Income and Security Act of 1974 (ERISA) does not apply to the public sector. Failure to provide for full actuarial funding violates the concept of interperiod equity, which the Governmental Accounting Standards Board cites as a fundamental responsibility of public administrators. Underfunding also violates the just savings principle developed by the philosopher John Rawls. This paper examines the extent of retirement system underfunding in state and local government and considers the various ways in which underfunding imposes an unfair burden on future generations. The ethical significance of underfunding is tied to the works of Rawls, and remedial measures are proposed which are consistent with Rawls’ just savings principle

Actuarial science · Annuity · Business · CITES · Economics · Intergenerational equity · Law and economics · Life annuity · Pension · Political science · Public economics · Remedial education · Financial Literacy, Pension, Retirement Analysis · Fiscal Policy and Economic Growth · Housing Market and Economics · Law · Public Administration · Finance

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