How Did State/Local Plans Become Underfunded?

by , and


The brief’s key findings are:

  • A new analytical tool tells a clear story of why unfunded liabilities rose during 2001-2013.
  • The primary factor was investment returns that fell short of expectations due to the two financial crises.
  • A secondary factor was that many plans failed to make adequate contributions, a more serious problem among the worst-funded plans.
  • This type of analysis should be added to every plan’s annual actuarial valuation.

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