The Funding Status of Locally Administered Pension Plans
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.