Tag: funded ratio
The projected funded ratio for state and local pension plans in FY 2025 is 77.7 percent, 1.5 percentage points higher than 2023 – the date of our last funding update. These gains seem quite modest, given that the S&P index increased more than 40 percent between June 2023 and June 2025…
And that’s probably a good thing! Our most recent update of state and local pension plans showed that – even after nearly a decade of stock market gains – plans were only about 70 percent funded in FY2020. That funded ratio discounts future benefits by the plan’s assumed rate of return (7.2 percent); the ratio…
