New Report: State/Local Pension Plans Still Recovering from Recession
WASHINGTON, June 5, 2014 /PRNewswire-USNewswire/ -- The Center for State and Local Government Excellence 2014 report of state and local government pension funding finds that many plans are still recovering from the effects of the 2008 economic downturn.
Written by Alicia H. Munnell, Jean-Pierre Aubry, and Mark Carafelli of the Center for Retirement Research at Boston College, The Funding of State and Local Pensions 2013-2017 surveyed 114 state and 36 local plans.
Its key findings include:
- Despite a strong stock market, the funded status of public plans in 2013 remained unchanged at 72 percent for two reasons:
- actuarial smoothed assets grew modestly; and
- CalPERS, one of the nation's largest plans, significantly revised its reported funded ratio.
- Funded levels among plans vary significantly.
- An encouraging sign is that many sponsors appear to be paying a larger share of their annual required contribution.
- There is slight improvement in 2013 at the top: 6 percent are 100 percent funded or better; 28 percent are more than 80 percent funded.
- Going forward, the funded ratio is projected to gradually move above 80 percent, assuming expected stock market returns.
Access all Center retirement research at http://slge.org/research/retirement
About the Center for State and Local Government Excellence
The Center for State and Local Government Excellence helps state and local governments become knowledgeable and competitive employers so they can attract and retain a talented and committed workforce. The Center identifies best practices and conducts research on competitive employment practices, workforce development, pensions, retiree health security, and financial planning. The Center also brings state and local leaders together with respected researchers and features the latest demographic data on the aging workforce, research studies, and news on health care, recruitment, and succession planning on its website, www.slge.org.
SOURCE Center for State and Local Government Excellence