Awareness has grown across the country and abroad for the challenges associated with funding public pensions. At a minimum, the US has $1.2 trillion in unfunded state and local pension liabilities. Without reform, individuals will lose out on a secure retirement and taxpayers will be left holding the bill.
Led by Ellen McGrattan, director of the Heller-Hurwicz Economics Institute, and Kurt Winkelmann (PhD ‘87), University of Minnesota senior fellow, we are developing a comprehensive research-based approach to public pension policy design. The project aims to use the tools of economic analysis to create a framework, language, and applications for evaluating policy tradeoffs that all stakeholders can understand and support. Working with faculty across the University, the project will take into consideration legal, political, and market-based barriers in order to make meaningful policy change.