Little Rock Among 9 Cities With Worst Performing Pension Plans
By:
Updated: January 16, 2013
The Pew Center reports Little Rock is among nine other U.S. cities with the worst performing pension funds.
Little Rock has 59 percent of its pension plan funded and only 18 percent of its retiree health care paid for, according to "A Widening Gap in Cities."
The gap affects police, firefighters and other city workers.
Arkansas Municipal League Executive Director Don Zimmerman says he's optimistic the city will come up with a fix but it will require a combination of the city coming up with more money and scaling back on benefits.
The Pew Center report also states cities that do not exercise discipline in funding its retirement benefits face the risk of having their credit rating downgraded which could mean borrowing costs could go up.
Little Rock has 59 percent of its pension plan funded and only 18 percent of its retiree health care paid for, according to "A Widening Gap in Cities."
The gap affects police, firefighters and other city workers.
Arkansas Municipal League Executive Director Don Zimmerman says he's optimistic the city will come up with a fix but it will require a combination of the city coming up with more money and scaling back on benefits.
The Pew Center report also states cities that do not exercise discipline in funding its retirement benefits face the risk of having their credit rating downgraded which could mean borrowing costs could go up.
