(Bloomberg) -- The Puerto Rico legislatures move to keep the commonwealths teacher pension from running out of cash by freezing benefits and raising worker contributions shows how U.S. municipalities are addressing a $1 trillion retirement- funding deficit by reining in once-ironclad promises.
The measure covering about 80,000 current and retired teachers goes to Governor Alejandro Garcia Padilla. With the pension projected to run out of money by 2020, the 42-year-old chief executive had pushed for the legislation and is expected to sign it after Moodys Investors Service said Dec. 11 it may cut the commonwealths general-obligation debt to junk if the island, with $70 billion in general-obligation and public-agency debt, continues to deteriorate.
Register or login for access to this item and much more
All Financial Planning content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access