Fierce Debt Puts Pensions at Risk in Puerto Rico (NY Times)

November 26, 2012 – Puerto Rico is fighting to stay afloat in a rising sea of debt. Its economy is sputtering. Its population is shrinking. Its recent election is disputed. Its public pension fund is perilously low on cash. Desperate to raise cash, Puerto Rican officials have been selling off anything they can: two toll roads and the main airport so far. Perhaps more important, it has to figure out how to salvage its retirement funds. After shortchanging them for years, it now has the weakest major public pension system in America. The main fund, which serves about 250,000 government workers, past and present, is only 6 percent funded — a small percentage of what is considered the minimum needed for a marginally healthy pension plan — and could run out of money as soon as 2014.

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