Monday, August 05, 2013

Moderates call for Congress to develop a municipal bond insurance program to stabilize public pension accounting

Congress should develop a federal municipal bond insurance program, which would establish uniform national standards for actuarial projections of returns on pension investments.  That is a suggestion made on p. A17 of the Monday, August 5, 2013 New York Times, by Richard J. Riordan an Tim Rutten, title "A Paln to Avert the Pension Crisis", link here.

This would not overlap the responsibilities of the Pension Benefit Guaranty Corporation (PBGC).

The GOP would probably resist a proposal like this, but would have a hard time not looking silly.

The entire tax-free municipal bond world could be at risk without more uniform standards of actuarial accounting, which generally already exist in the life insurance industry.  

No comments: