New Center for Excellence issue brief: The Funding of State and Local Pensions: 2012-2016

WASHINGTON, June 27, 2013 /PRNewswire-USNewswire/ -- A new issue brief from the Center for State and Local Government Excellence, The Funding of State and Local Pensions: 2012-2016, looks at the confusing road ahead as public pension plans calculate their assets and liabilities in 2014 according to new accounting standards issued by the Governmental Accounting Standards Board (GASB).

Written by Alicia H. Munnell, Jean-Pierre Aubry, Joshua Hurwitz, and Madeline Medenicaof the Center for Retirement Research at Boston College, the brief's key findings include:

• During 2012, using current GASB standards, the funded status of public plans declined slightly from 75 percent to 73 percent.
• Going forward, the funded ratio is projected to gradually move above 80 percent, assuming a healthy stock market.
• The Annual Required Contribution (ARC) increased significantly over the last three years due to higher unfunded liabilities related to the financial crisis.
• In 2012, employers contributed 80 percent of the ARC owed.

Read the full brief at http://slge.org/publications/the-funding-of-state-and-local-pensions-2012-2016

Access all Center retirement research at http://slge.org/research/retirement

About the Center for State and Local Government Excellence
The Center for State and Local Government Excellence helps state and local governments become knowledgeable and competitive employers so they can attract and retain a talented and committed workforce. The Center identifies best practices and conducts research on competitive employment practices, workforce development, pensions, retiree health security, and financial planning. The Center also brings state and local leaders together with respected researchers and features the latest demographic data on the aging workforce, research studies, and news on health care, recruitment, and succession planning on its website, www.slge.org.

SOURCE Center for State and Local Government Excellence