The effect of longer lifespans on state and local pension funding.

Position:News & Numbers

Americans are living longer, and that creates new funding challenges for state and local pension plans. Private-sector plans are already required to use new mortality tables that account for increased longevity when formulating cost estimates. A new issue brief from the Center for State and Local Government Excellence, How Will Longer Lifespans Affect State and Local Pension Funding?, examines the impact that incorporating longevity improvements into costs estimates could have on the funded status of state and local defined benefit plans. Key findings include:

* Using the private sector standard, public plans underestimate life expectancy by...

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