Pandemic Worsens Pension Crisis

The video discusses the global pension crisis exacerbated by COVID-19, highlighting reduced contributions, low investment returns, and increased debt. The Mercer CFA Institute Global Pension Index shows a decline in pension systems, with the US ranking 18th. US pension plans face a growing financial gap, worsened by pandemic-induced revenue losses. States like New Jersey and Illinois struggle with budget shortfalls and unfunded liabilities, resorting to tax increases to fund pensions.

What are some of the effects of the global recession on pension systems?

• Decreased debt levels

• Reduced pension contributions and increased debt

• Higher investment returns

• Increased pension contributions

According to the Mercer CFA Institute Global Pension Index, where did the United States rank in 2020?

• 25th

• 10th

• 1st

• 18th

What is a major issue faced by US pension plans?

• Low number of retirees

• Excessive surplus

• Widening gap between owed and payable amounts

• High investment returns

How is Illinois addressing its unfunded pension liabilities?

• By cutting pension plans

• By reducing taxes

• By paying pensions through taxes

• By increasing pension benefits

What financial challenge did New Jersey face recently?

• A $2 billion decrease in pension contributions

• A $10 billion increase in tax revenue

• A $6 billion revenue shortfall

• A $5 billion surplus