The increase in Austin's pension debt over the last decade is due in part to the fact that as the population grew, demand for public services increased and the city added more than 1,000 public employees between 2010 and 2015. As the cost of providing benefits rose, the city failed to keep up with contributions to the system—skipping nearly 170millioninpaymentstotheEmployees′RetirementPlan,whichisthecity′slargestretirementplan,overeightyears.Atthesametime,itsufferedaseriesofinvestmentshortfallssystemwide,whichcompoundedtheeffectofthemissedcontributionsandledtoawideninggapbetweenassetsandliabilities.Despitethefactthatthecityispayingmoreandmoreintotheplanseachyear,unfundedliabilitiesarecontinuingtorise.Infact,Austinspendsmorethanhalfofitspensionpaymentsondebt—ratherthanbenefitsforpublicworkers.Yeteventhesepaymentsmightnotbesufficienttopayofftheunfundedliabilities,andifthecityearnslessthanexpectedonitsinvestments,debtwillrapidlyrise.Thebriefexplainsthatthecitymusttakeimmediatestepstopaydowntheunfundedliabilitiesinordertoimprovethestabilityofitspensionplans.LocalleadersinAustinshouldtakenoteofthepensioncrisisthatisunfoldinginDallas.Twoyearsago,Dallas′pensionsystemwasinasimilarpositiontotheonethatAustiniscurrentlyin.However,Dallas′pensiondebtdoubledto4 billion and its funded ratio plummeted to 56 percent after the plan administrators made a series of reckless decisions that have pushed the city's largest plan, the police and fire fund, to the brink of bankruptcy.The situation in Dallas should provide a cautionary example of how quickly debt can spiral out of control. In the brief, McGee and Diaz Aguirre call on Austin's leaders to make the changes necessary to ensure that the city is able to uphold its retirement promises to public workers. The authors present a number of recommendations that would help stabilize the system and address the plan's underlying structural flaws, including:Making adequate funding non-negotiable and committing to pay down current unfunded liabilities in 30 years or less.Establishing prudent and realistic funding and investment policies.Establishing local control of the pension fund in order to improve oversight and accountability.Consider enrolling new workers in plans that are simpler and easier to manage, like Defined Contribution or Cash Balance plans