Defined Benefit plans covering city employees in Detroit, Chicago, and Philadelphia are on schedule to go broke within this decade.
Using hard numbers from available valuation reports on 25 plans in 17 of the largest US cities and consistent with the methodology used in our previous study of state plans we conservatively calculate a funded ratio for these plans of 64.46% with 9.63% of assets being paid out annually.
Among the highlights:
Philadelphia is paying out over 20% of it’s money annually forcing contributions to rise near that level to put off projected bankruptcy until 2018.
New York City’s plans go bankrupt in 2023.
Plans in El Paso, San Antonio, Dallas Police & Fire and, surprisingly, Washington, DC are adequately funded, for now.
Chicago plans, across the board, will run out of money by 2019.