US - Pittsburgh had the outlook on its debt revised to negative from stable by Standard & Poor's, which cited rising financial pressures tied to the city's pension system.
Pennsylvania's second-biggest city by population also faces "uncertainty regarding the potential takeover of the city's pension system by the state should the pension's funding levels fall below 50% on December 31," an analyst, John Sugden- Castillo, said today in a statement.
The pension system faces a $650m shortfall. Keeping up with expanding retirement obligations may consume 40% of Pittsburgh's annual budget for the next three decades, according to Mayor Luke Ravenstahl. A state takeover of the pension system may force him to raise taxes and cut services.
The ratings company also affirmed its BBB rating, two levels above speculative grade, on the city's general obligation bonds. The city has limited options for raising revenue, uses reserves to balance its 2011 budget, and has "above-average" debt levels, S&P said.
Industry experts are calling on the government to act quickly on new pensions dashboard legislation. The DWP is looking at how to do it amid Brexit constraints, writes Kim Kaveh.
An interactive and hands-free technology that allows savers to track how much they have invested into their retirement pots has been launched by Smart Pension.
The Lighthouse Pensions Trust has recorded an 84% surge in the number of employers signed up to its auto-enrolment (AE) provision.
Melrose Industries's UK defined benefit (DB) schemes had a £5.5m combined deficit at the end of 2016, its annual results have revealed.