Even before the precipitous market decline of late 2008, pension obligations were threatening the long-term fiscal stability of many municipalities. Urban centers with declining populations and unfavorable retiree-to-employee ratios— such as Pittsburgh, where pension fund liabilities represent a big chunk of the city’s financial woes—have the most serious problems, but underfunded pension plans can be found in dozens of Pennsylvania municipalities of all sizes. In response to the growing awareness of municipal pension problems in Pennsylvania, the Fiscal Policy and Governance Committee of the University of Pittsburgh Institute of Politics formed the Pensions Subcommittee to gather information and consider policy options
