Did the SEC and S&P Let 14 States Destroy Their Pensions?

Abstract

14 States have broken balanced budget clauses of their own constitutions in addition to defying the rules of pension mathematics. I contend that the ratings agencies and the SEC are enablers by allowing this partial payment culture to exist and not punishing states and localities enough for not making their Actuarially Required Contribution (ARC). The dirty little secret of at least 14 states is that politicians have misled the public as both political parties have conspired to secretly borrow $100’s of billions from their pensions.