The Funding Status of Locally Administered Pension Plans

Alicia H. MunnellJean-Pierre Aubry Kelly Haverstick

SLP#8

The brief’s key findings are:

  • Contrary to conventional wisdom, local plans are at least as well funded as state plans.
    • Funding ratio: 85 percent for local plans vs. 84 percent for state plans.
    • Making required contributions: 69 percent for local plans vs. 54 percent for state plans.
  • Despite this relatively positive outlook, some jurisdictions face serious shortfalls and a deteriorating economy may produce a gloomier picture going forward.