by Iliya Atanasov
Pioneer Institute for Public Policy Research
January 17, 2014
Massachusetts state leaders’ 2010 decision to postpone the deadline for full funding of the state and teachers’ retirement systems from 2025 to 2040 may cost taxpayers up to $26.4 billion. Pushing out the funding deadline will free up an estimated $11.9 billion that would have otherwise been dedicated to pension payments between 2011 and 2025. But the delay will result in up to $38.4 billion in additional contributions between 2026 and 2040. The deadline was pushed back in 2010 in the wake of the financial crisis.