From the summary:
SLGE’s annual update on the funded status of state and local pension plans outlines the challenging path that plans have been on, especially since 2009.
• Overall, public pensions are in a better position than they were immediately following the recent economic downturn;
• The ratio of assets to liabilities for the 170 plans in the Public Plans Database decreased from 73 percent in 2015 to 72 percent in 2016, as measured by the traditional GASB standard; and from 73 percent to 68 percent, as measured by the new standard;
• These plans, which account for the vast majority of the members and assets of state and local pension plans, have been paying more of their required contributions (92 percent) relative to recent years;
• Payments as a percentage of payroll have increased to 18.6 percent;
• Plans in the PPD have continued to adjust their annual investment return assumptions downward to an average of 7.6 percent in FY 2016;
• In order to return the aggregate funded ratio above 80 percent, plan sponsors will need to increase their contribution efforts and investment returns must consistently meet or exceed expectations over a sustained, longer term.