Editorial: Pension fight at State Capitol is only Round One

Biggs said pension systems, like the smaller sums in individuals’ 401(k) accounts, are heavily dependent on stock market returns. And what happens when the market is down? Rarely do governments then step up and invest more money in their current-year budgets to make up the difference. Instead, future liabilities of pension systems are left unfunded.

So while the fight over the level of the “old” UAL payment caused a ruckus in the State Capitol this year, Louisiana is among many other states that must look more closely at keeping up the payments that will, in the future, pay for all retirees’ benefits. Unless the politicians keep a close watch on them, future debts can accrue even when the old UAL payments cease. The political process must make sure that state government, ours and others, does not project sky-high market returns while neglecting to pay into the systems with real money in today’s budgets.