Public pension fiasco: fun with mortality tables

Bloomberg reports that the “Hidden Pension Fiasco May Foment Another $1 Trillion Bailout.” Its account of the games played by public actuaries are astounding. I especially loved this bit about the Puerto Rico system:

Gaitan says the retirement system’s underfunding may actually be an additional $1 billion or more than the fund reports, because the board relies on outdated mortality tables based on 1960s statistics to compute its future obligations. The shorter life spans in those outdated tables reduce the apparent size of the fund’s liabilities.

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