{"id":1988,"date":"2012-07-06T15:44:46","date_gmt":"2012-07-06T22:44:46","guid":{"rendered":"http:\/\/www.jsharf.com\/view\/?p=1988"},"modified":"2012-07-06T15:44:46","modified_gmt":"2012-07-06T22:44:46","slug":"amortize-this","status":"publish","type":"post","link":"https:\/\/www.jsharf.com\/view\/?p=1988","title":{"rendered":"Amortize This!"},"content":{"rendered":"

In Pension accounting, the amortization period is how long it would take to pay off the current unfunded liability, based on current contributions, and current employees.<\/p>\n

Typically, pensions try to keep that time at about 30 years, or a normal, long career. \u00a0That does a pretty good job of matching contributions to liabilities.<\/p>\n

The amortization period for PERA’s school fund is now 59 years.<\/p>\n

PERA’s retirement age is 58.<\/p>\n

Retirees who haven’t even been born yet are having their benefits amortized by current contributions.<\/p>\n

Sleep well.
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