The Funding of State and Local Pensions in 2010
The brief’s key findings are:
- During 2010, the funded status of public plans fell from 79 percent to 77
- This decline was primarily due to slow growth in assets, which reflects
smoothing of market gains and losses over a 5-year period
- The comparable figures discounting liabilities by the riskless rate are 53 percent to 51 percent.
- Going forward, the outlook for pension funding is mixed.
- States and localities have been falling short on required pension payments.
- But they have been trimming payrolls, reducing benefits for new hires, and raising contributions.
- And the impact of the financial crisis on asset values will gradually fade.