03/29/2024

How Well-Funded are Pension Plans in Your State?

Recently released data from The Pew Charitable Trusts shows the strain on state retirement systems across the nation as state pension funds strive to keep pace with pensions owed to public employees.

As of fiscal year (FY) 2016 (the most recent data available), states reported a combined $1.4 trillion in state pension plan funding deficits. Below-expected returns on investment and insufficient state allocations contributed to widening shortfalls in numerous states since we reported on the FY 2014 data last year.

This week’s map uses FY 2016 data to show the funded ratio of public pension plans by state, calculated by measuring the market value of state pension plan assets in proportion to each state’s accrued pension liabilities. Lower funded ratios indicate when a state’s pension plan is not adequately funded, while higher funded ratios are evident in states whose pension assets are keeping relatively good pace with accrued liabilities.

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