Public Pensions Contend with Falling Markets and Rising Inflation

The brief’s key findings are:

FY 2022 has been hard for state and local pension plans, with large investment losses and rising outlays due to inflation.
The aggregate funded ratio fell from 78 percent to 74 percent, negating much of the gains from the previous year.
The impact of rising inflation on pension finances, though, has been muted by limits to plans’ cost-of-living adjustments (COLAs).
However, the flip side of limited COLAs is less inflation protection for retirees, especially those not covered by Social Security.

Briefs