Like many large local governments, public universities are being weighed down by unfunded pension liabilities. At an estimated $183 billion next year, they will exceed the institutions’ total capital debt. Moody’s reckons that aggregate adjusted net pension liabilities will increase about 40% – the same rate at which the liabilities of 50 largest local governments is growing – between fiscal year-end 2015 and fiscal year-end 2017. Assuming bonded debt maintains its recent 8% growth, pension-related liabilities will represent 62% of total debt by the end of 2017, the ratings agency said Nov. 18. Moody’s estimates are based on investment results…
Pension Liabilities Of Universities Projected To Exceed Capital Debt
Bala Murali Krishna
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