The Funding of State and Local Pensions: 2012-2016

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SLP#32

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.

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