Audio: The Failed Experiment of Pension Bonding

In 2008, the Alaska Legislature passed House Bill 13, which authorized the selling of bonds (debt) for investment to fill the $10 billion pension gap in PERS/TRS. But Steve Malanga from the Manhattan Institute says pension bonding is an idea that has been attempted in other states with some terrible results.

Alaska dodged a bullet when, shortly after the authorizing legislation was passed, the economy tanked before any bonds could be issued. But the mechanisms to implement these policies have not been repealed.

Alaska Watchdog: State sees bonds as investment capital to close unfunded pension gap (June 14, 2010)

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