The Society of Actuaries has just published the Report of the Blue Ribbon Panel on Public Pension Plan Funding. It recommends, among other things, that the plan liability at risk-free rate be disclosed, along with plan funding calculation. Andrew Biggs was a panel member, Jeremy Gold was interviewed and Barton Waring should have been interviewed. Could those three people express their reactions to the publication of the above-mentioned report?

I’m always amazed at how quick the public points to a reduction of employee pension benefits as the first solution to the financial difficulties of states or municipalities. Pension plan participants are owners of deferred salaries, just like bondholders are owners of deferred interest payments. Shouln’t the credit ranking of pension plan participants be more clearly established?
Jacques R Gagné, CFA, CIPM, FSA
Quebec City