The Funding of State and Local Pensions: 2013-2017

Source: Alicia H. Munnell, Jean-Pierre Aubry and Mark Cafarelli, Center for Retirement Research at Boston College (CRR), State and Local Pension Plans, Number 39, June 2014

The brief’s key findings are:
∙ Despite a strong stock market, the funded status of public plans in 2013 remained unchanged at 72 percent for two reasons:
– actuarially smoothed assets grew modestly; and
– CalPERS, one of the nation’s largest plans, significantly revised its reported funded ratio.
∙ An encouraging sign is that sponsors appear to be paying a larger share of their annual required contribution.
∙ Going forward, the funded ratio is projected to gradually move above 80 percent, assuming historical stock market returns.