The Funding of State and Local Pensions: 2012-2016

Source: Alicia H. Munnell, Jean-Pierre Aubry, Josh Hurwitz, and Madeline Medenica, State and Local Pension Plans, SLP#32, July 2013

The brief’s key findings are:
– During 2012, using current GASB standards, the funded status of public plans declined slightly from 75 percent to 73 percent.
– This decline reflected slow asset growth, which was only partly mitigated by reduced liability growth.
– States and localities also continued to fall short on their annual required contribution payments.
– Going forward, the funded ratio is projected to gradually move above 80 percent, assuming a healthy stock market.