An Update On Pension Obligation Bonds - KMPH FOX 26 | Central San Joaquin Valley News Source

An Update On Pension Obligation Bonds

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Center for State and Local Government Excellence

New issue brief examines their use

WASHINGTON, July 2, 2014 /PRNewswire-USNewswire/ -- A new issue brief from the Center for State and Local Government Excellence examines the rationale for issuing Pension Obligation Bonds (POBs) and how they have performed since the financial crisis.  

An Update on Pension Obligation Bonds, written by Alicia H. Munnell, Jean-Pierre Aubry, and Mark Carafelli of the Center for Retirement Research at Boston College, finds that governments are more likely to issue POBs if their debt levels are high, they are short of cash, and the pension plan represents a substantial obligation to government.

If the timing is good, governments will earn more on the proceeds than they have to pay in interest.

The brief's findings include:

  • Some state and local governments issue POBs to cover their required pension contributions.
  • POBs offer budget relief and potential cost savings, but also carry significant risk.
  • POBs had a negative average real return from 1992-2009, but show a small gain when the time period is extended to 2014.
  • POBs could be a useful tool for fiscally sound governments or as part of a broader pension reform package for fiscally stressed governments.
  • But results to date suggest that, instead, POBs tend to be issued by governments under financial pressure who have little control over the timing.

Read the brief at http://slge.org/publications/an-update-on-pension-obligation-bonds

Access all Center retirement research at http://slge.org/research/retirement

About the Center for State and Local Government Excellence
The Center for State and Local Government Excellence helps state and local governments become knowledgeable and competitive employers so they can attract and retain a talented and committed workforce. The Center identifies best practices and conducts research on competitive employment practices, workforce development, pensions, retiree health security, and financial planning. The Center also brings state and local leaders together with respected researchers and features the latest demographic data on the aging workforce, research studies, and news on health care, recruitment, and succession planning on its website, www.slge.org.

©2012 PR Newswire. All Rights Reserved.

  • Local NewsLocal NewsMore>>

  • Hundreds Become U.S. Citizens In Fresno

    Hundreds Become U.S. Citizens In Fresno

    Hundreds of people became American citizens during a Naturalization Ceremony in Downtown Fresno on Tuesday. 685 people from 40 different countries took the final step in their journey's to become U.S. Citizens.
    More >>
    Hundreds of people became American citizens during a Naturalization Ceremony in Downtown Fresno on Tuesday. 685 people from 40 different countries took the final step in their journey's to become U.S. Citizens.

    More >>
  • Pay Up or Prison? IRS Scam Targets Taxpayers

    Pay Up or Prison? IRS Scam Targets Taxpayers

    Scammers have a new way to target your wallet and bank account- and this time around, they're pretending to be the tax man.Those who get a call, describe it like an ambush."’This is what you owe, this is what you owe, you need to pay, figure it out,’” says Lydia Rubio, describing a call she received Monday.She had missed the call in her Madera home, and found a message on her voice mail telling her "This is Crystal from Internal Revenue Service… there is a CP-11 notice filed against your name...More >>
    Scammers have a new way to target your wallet and bank account- and this time around, they're pretending to be the tax man.Those who get a call, describe it like an ambush."’This is what you owe, this is what you owe, you need to pay, figure it out,’” says Lydia Rubio, describing a call she received Monday.She had missed the call in her Madera home, and found a message on her voice mail telling her "This is Crystal from Internal Revenue Service… there is a CP-11 notice filed against your name...More >>
  • New California Law Puts Limits On Football Practices

    New California Law Puts Limits On Football Practices

    When high school football teams in California hit the practice field next season, they won't be able to practice tackling as often. That goes for all other school and youth teams as well. California now has a new law that limits tackling practices to only two a week.More >>
    When high school football teams in California hit the practice field next season, they won't be able to practice tackling as often. That goes for all other school and youth teams as well. California now has a new law that limits tackling practices to only two a week.More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KMPH. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.