Public Pensions Contend with Falling Markets and Rising Inflation



The brief’s key findings are:

  • FY 2022 has been hard for state and local pension plans, with large investment losses and rising outlays due to inflation.
  • The aggregate funded ratio fell from 78 percent to 74 percent, negating much of the gains from the previous year.
  • The impact of rising inflation on pension finances, though, has been muted by limits to plans’ cost-of-living-adjustments (COLAs).
  • However, the flip side of limited COLAs is less inflation protection for retirees, especially those not covered by Social Security.

Would you like to take a short survey about the Public Plans Data website?

Yes, take me to it.       No, thanks.      Not now, but ask me later.

Step 1 of 2