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Unions show their muscle, spend millions in state races

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Over the summer, the Governmental Accounting Standards Board approved new accounting rules for pensions that will make some underfunded plans look worse when the rules begin to go into effect late next year. State and local governments will have to print their total unfunded liability on the front of financial statements.

“It’s going to help identify those plans in serious trouble, which could help policy makers and the public be aware of the need for action,” said David Draine, a researcher who tracks pension changes at the Pew Center.

That could increase pressure on elected officials to reduce benefits and make bargaining more difficult for unions.

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