The Funding of State and Local Pensions: 2009-2013

Source: Alicia H. Munnell, Jean-Pierre Aubry, and Laura Quinby, Center for Retirement Research at Boston College, State and Local Pension Plans, no. 10, April 2010

The brief’s key findings are:
– State and local plans, which were headed toward full funding, were knocked off track by the financial crisis.
– Their funding ratio dropped from 84 percent in 2008 to an estimated 78 percent in 2009.
– Funding will likely continue to decline to 72 percent by 2013.
– Reversing this decline will be difficult, as plans face constraints in increasing revenues from either employee contributions or taxes.

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