A study done by the actuarial firm Milliman found that the country's largest 100 public pension funds are underreporting their unfunded liabilities by about $300 billion, Reuters reported today. 

Although the 100 funds account for a total of $1.2 trillion in unfunded liabilities, the report's author, Rebecca Sielman, called the finding, "good news" because the results, according to Stielman, as paraphrased by Reuters, "should reassure the public that America's public pensions in general are accurately reporting their funding shortfalls."

The difference is between the 75.1 percent median funding level the pension systems reported and the 67.8 median funding level Milliman found using its own methodology to determine assets and liabilities.

The pensions are so large, "a small change in the way the figures are calculated could lead to seemingly outsized results," Reuters reported, adding that, in Stielman's words, the difference, "really didn't move the needle."

What role does private equity play in public pension funds? State pension funds and other large investors are "rightly skeptical of private equity...asking for evidence that these firms aren't just focused on investment returns," according to a recent article in The Huffington Post.

Private equity has come under scrutiny in the current presidential campaigns, depicted as "job destroyers," by Obama's team. 

The big private equity firms, as well as their lobby group, The Private Equity Growth Capital Council (PEGCC), are stepping up to the plate, highlighting their benefit to the public.

Last month The Wall Street Journal reported that the PEGCC created an interactive map, "Private Equity at Work in Your State," showing state-by-state and company-by-company, the number of companies backed by financial sponsors, the number of employees and the number of dollars invested in them between 2002 and 2011. 

"This data, coupled with the new interactive map, further demonstrates who benefits most from successful private equity investments," PEGCC said in a statement, as reported by The WSJ, adding that teachers, police and firefighters are among those who benefit.

Related Articles

Exclusive: Study shows $1.2 trillion gap for public pensions

Private equity lobby group pushes public pension data