Massachusetts Treasurer Steven Grossman favors lowering the assumed return rate on his state’s pension-fund assets. He’s not alone. While particulars vary, many states have lowered assumptions in the face of the European debt crisis and diminished returns.

In Pennsylvania, lawmakers this week held hearings on an unfunded pension liability that Moody’s Investors Service cited last month while lowering the state’s general obligation bond rating to Aa2 from Aa1.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.