Pension Time Bomb Ticks as Disclosure Rules Toughen: Muni Credit
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New Jersey, like other municipal governments, used an accounting sleight-of-hand for years to boost pension-funding levels. New rules are putting an end to the practice.
Last month, the state became the first to disclose weaker funding ratios under the revamped approach, according to Fitch Ratings. Under the new regime, which officials nationwide have phased in starting in 2013, governments must determine when their pensions will run out of money and reflect that projected investment returns will taper off after that date.