Pensions: Hedging Bets In Harrisburg

This story, "Pensions: Hedging Bets In Harrisburg," from Business Week (you'll need to register to read it, but it's free) reveals the shaking ground upon which Pennsylvania's public pension system is built.

Later this month, we'll release our pension study that further reveals the unfunded and ballooning liabilities to which our policymakers have committed the taxapyers.

Not only are the liabilities enormous, but the financial problem facing PA taxpayerscould be compounded by risky investments. For example, the story notes: "Pennsylvania, which ranks No. 22 in assets among statewide plans, has accumulated this strong record with a complex mix of stocks, bonds, private-equity partnerships, and -- perhaps most eye-catching of all -- hedge funds. Some 23% of Pennsylvania's assets are in hedge funds, a level unmatched among pension plans for state workers."

Stay tuned for more on this looming fiscal crisis...