Kellogg School of Management Prof. Joshua Rauh has bad news for New York City’s pension system.
The finance professor found that unless New York City undertakes serious reform or raises taxes and cuts spending, the system will not be able to handle increasing retiree costs.
As a result, it could become insolvent in 10 years because of $122 billion in unfunded benefits, according to the study.
His 32-page study, which he co-authored with a professor from the University of Rochester, is titled “The Crisis in Local Government Pensions in the United States.”
