The First 10 City Pensions That Will Run Out Of Money


The municipal pension crisis is like the social security crisis but worse: Unlike the federal government, cities cannot legally go into debt.

This imminent disaster is described in a new paper out by Robert Novy-Marx and Joshua Rauh [PDF].

Novy-Marx and Rauh say most cities are burdened with unfunded liabilities, which are ignored by common accounting methods (see chart). Unfunded liabilities equal around $15,000 per household nationally, and up to $41,000 per household in some cities.

These cities are running out of money and will have to raise revenue or cut benefits to stay solvent.

#10 Fort Worth

#9 Detroit

#8 Baltimore

#7 New York City

#6 Jacksonville

#5 St. Paul

#4 Cincinnati

#3 Boston

#2 Chicago

#1 Philadelphia

BONUS: These cities are also facing pension apocalypse

But the municipal crisis goes beyond pensions. Check out...

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