Pensions are expected to pose a continued, and in some cases, rising source of budgetary pressure for local governments in general, according to a Fitch Ratings report.

"Pension contributions remain a source of budgetary pressure for local governments that provide defined benefits to retirees, whether provided by their own system or through a statewide plan," said Amy Laskey, Managing Director in Fitch's U.S. Public Finance group. "The level of risk posed by pension liabilities varies enormously among the more than 1,000 local governments Fitch rates. Each government's pension situation is evaluated individually."'

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