The update’s key findings are:
- Despite the recent market recovery, during fiscal year 2020, local government pension plans will see virtually no change in their average funded ratio.
- And, going forward, the strains on government finances due to the recession could make it harder for localities to pay their required pension contributions.
- But projections show that local plans are quite sustainable on a cash-flow basis. Most can pay benefits indefinitely at their current contribution levels.
- The only exceptions are the very worst-funded plans, which face the real risk of exhausting their assets.