The cost of funding Missouri’s state employee pensions will increase nearly $50 million in the next fiscal year as investment losses and lower earnings expectations push taxpayer contributions to the highest share of state payroll in the program’s history.
According to a new report from credit rating and financial analysis firm Moody’s, the Lone Star state’s four largest cities – Austin, Dallas, Houston and San Antonio – collectively face $22.6 billion worth of pension fund shortfalls. Here’s the story so far:
More than $500 million in deferred retirement funds have been withdrawn since August, worsening the fund’s finances. A study commissioned by the pension board projected that the fund will be insolvent in less than 15 years if no changes are made to the benefits received by members or to the amount of money the city contributes.
Japan is considering issuing additional deficit-covering bonds worth around 1.9 trillion yen ($17 billion) to offset an expected tax revenue shortfall in the current fiscal year to March, government sources told Reuters on Tuesday.
The plan, aimed at restoring fiscal discipline to in an effort to regain investors’ confidence, would set a minimum age of retirement at 65 years in a country where people work on average until the age of 54 years before retiring.
Democrat Susana Mendoza was sworn in Monday as state comptroller during a small ceremony at the Capitol, asking for patience and prayers as she takes office with lllinois’ pile of unpaid bills topping $10.4 billion.
The share of corporate bonds trading with yields at less than zero has posted a shallower fall. Roughly 24 per cent of euro-denominated bonds with an investment grade rating had a negative yield as of December 1, from 28.6 per cent in August.
The ECB has already spent 1.4 trillion euros on quantitative easing, a figure that will rise to 1.7 trillion euros by the end of March. A crucial hurdle to enlarging it even further is that some assets simply aren’t eligible to buy under self-imposed rules.
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