The brief’s key findings are:

• Under traditional accounting rules, the aggregate funded ratio for state and local pension plans in 2017 was 72 percent, largely unchanged from recent years.
• This overall stability, however, masks a growing gap among plans: the average funded ratio was 90 percent for the top third but just 55 percent for the bottom third.
• The plans in the bottom third are in worse shape because, on average, they receive lower long-term investment returns and pay less of their required contributions.
• In addition, all plans face the possibility of a market downturn, which could set back funding for several years.

The brief’s key findings are:

• In 2016, the funded ratio of state and local pensions declined under both old and new accounting rules.
• This decline reflected steady growth in liabilities and slow growth in assets due to poor stock performance.
• More recently, the revival of the stock market is helping plan assets recover, with funded ratios expected to improve in 2017.
• But, looking further ahead, funding ratios are projected to remain essentially flat due largely to the current approach of calculating required contributions.
• Thus, to achieve more meaningful progress, plans need to establish contribution levels that will actually reduce unfunded liabilities.

The brief’s key findings are:

• In 2015, the funded ratio of state and local pensions using traditional accounting rules, with smoothed asset values, rose from 73 percent to 74 percent.
• The funded ratio using new accounting rules, with market value, declined slightly.
• Required contributions continued to climb in 2015, but plans also stepped up their payments from 86 percent to 91 percent of the required amount.
• The funding outlook suggests steady improvement if plans realize expected returns, but a downward drift if returns fall short, as many financial experts predict.

The brief’s key findings are:

• During 2014, public plans adopted new accounting standards for reporting purposes but continued to use the traditional standards for funding purposes.
• The traditional funded ratio rose from 72 percent in 2013 to 74 percent in 2014 – the first improvement since the financial crisis.
• Required contributions continued to climb in 2014, but plans stepped up their payments from 82 percent to 88 percent of the required amount.
• The outlook for the next several years suggests continued steady improvement in funding unless plans experience lower than assumed asset returns.

The brief’s key findings are:

• Despite a strong stock market, the funded status of public plans in 2013 remained unchanged at 72 percent for two reasons:
  • actuarially smoothed assets grew modestly; and
  • CalPERS, one of the nation’s largest plans, significantly revised its reported funded ratio.
• An encouraging sign is that sponsors appear to be paying a larger share of their annual required contribution.
• Going forward, the funded ratio is projected to gradually move above 80 percent, assuming historical stock market returns.

The brief’s key findings are:

• During 2012, using current GASB standards, the funded status of public plans declined slightly from 75 percent to 73 percent.
• This decline reflected slow asset growth, which was only partly mitigated by reduced liability growth.
• States and localities also continued to fall short on their annual required contribution payments.
• Going forward, the funded ratio is projected to gradually move above 80 percent, assuming a healthy stock market.