You are absolutely correct. Other factors are: reduced employees contributing. Overall, the number of police and fire employees is down. For example: 30 years ago, Saginaw had 150 plus police officers, today: 55. Ditto on Flint, Detroit, etc. The actuarial tables were built on a much lower life expectancy. Into the 1970’s, most police and fire lived less than 10 years after retirement. Now they are living 30 plus years. In other words: Fairy tales. Many cities are now transitioning to defined contributions. However, many still hold the defined benefit pensions that they will have to cover since there is no longer current contributions coming in.