Local government pension plans as well funded as state plans.
Position | News & Numbers - Brief article |
Pension plans administered by local governments have funding strategies that are as good as or better than those of state plans, according The Funding Status of Locally Administered Pension Plans, the eighth issue brief on retirement plans by the Center for State and Local Government Excellence. Local plans in the center's study had a funding ratio of 85 percent, compared with 84 percent for state plans. In addition, 69 percent of localities made their annual required contribution (ARC), versus 54 percent of states. State and local pension plans are both about as well-funded as private-sector plans, although they are not subject to the same funding requirements. The brief is based on data from 84 plans from 38 states, as of 2006.
Funding ratios compare assets with liabilities, and a 100 percent ratio means the plan's assets cover...
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