The Funding of State and Local Pensions: 2011-2015

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SLP#24

The brief’s key findings are:

  • During 2011, the funded status of public plans slipped from 76 percent to 75 percent.
  • This decline reflected slow asset growth due to actuarial smoothing, which was partly mitigated by an unexpected reduction in liability growth.
  • Going forward, the funded ratio is projected to remain steady next year and then gradually improve as the market meltdown is phased out of the calculations

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