Source: John Lombardi, Timothy Blake, Jack Dorer, Emily Raimes, Nicholas Samuels, Marcia Van Wagner, Thomas Aaron, U.S. Public Finance, Sector In-Depth, January 15, 2016
From the Pensions & Investments article:
Twenty-seven states saw a decline in pension fund liabilities in fiscal year 2014, boosted by strong investment returns, said a report from Moody’s Investors Service.
The median annualized return for the period ended June 30, 2014, was 16.1%.
Across all 50 states, however, adjusted net pension liabilities rose to an aggregate $1.3 trillion, as 23 states reported liability increases due in part to accounting changes or lagged reporting, which did not yet reflect 2014’s strong investment performance.
Looking at adjusted net pension liability as a proportion of government revenue, Moody’s found the median ratio dropped to 59% in fiscal year 2014 from 60% in 2013 thanks to state revenue growth. Illinois, Connecticut and Kentucky continued to report the highest ratios of pension liability to revenue at 297%, 213% and 185%, respectively. Nebraska, Wisconsin, New York and Tennessee continued to report the lowest liabilities-to-revenue ratios at 11%, 14%, 23% and 23%, respectively…..