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.