Employee Retirement Programs as a Growing Urban Problem

Abstract

This paper examines the relationship between public employee pension funds and local government revenues. The relationship is developed by first surveying, in a non-technical manner, the characteristics of public employee pension funds and suggesting some criteria for evaluation. Bureau of the Census data are used to explore these relationships, initially focusing on all U.S. cities and subsequently on Michigan cities. The central question addressed is the size and growth of pension contributions relative to the ability of cities to finance these obligations.