Institute for Truth in Accounting
written by Sheila Weinberg, IFTA founder & CEO
May 30, 2011
The Institute for Truth in Accounting is just wrapping up our study to determine the financial state of each state. The opaqueness of the pension data has made the task nearly impossible. First states are not required to disclose the full amount of unfunded pension liabilities. We have found hundreds of billions of dollars of off-balance sheet liabilities.
To make transparency even worse states that are involved in pension plans with other employers, such as cities, counties and school districts, do not keep track of the each governmental entities share of the unfunded actuarially accrued liabilities (UAAL). Evidently, the plan administrators do not keep track of employer contributions either.
For example a finance manager of a governmental pension plan made the following comment in an email. “We do not break out UAAL or contributions by employer type.”
In other words, the pension plan administrator does not keep track of who gives them contributions and for how much.
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