The Funding of State and Local Pensions: 2009-2013

New Center for Excellence Issue Brief

WASHINGTON, April 8 /PRNewswire-USNewswire/ -- The Center for State and Local Government Excellence has issued a new issue brief that provides an analysis of the effects the 2008 economic downturn has had on state and local government pension plan funding, along with future projections.

The brief, which was written by Alicia H. Munnell, Jean-Pierre Aubry, and Laura Quinby of the Center for Retirement Research at Boston College, finds that:

• State and local plans, which were headed toward full funding, were knocked off track by the financial crisis.
• Their funding ratio dropped to an estimated 78 percent in 2009 from 84 percent in 2008.
• Funding will likely continue to decline to 72 percent by 2013.
• Reversing this decline will be difficult, as plans face constraints in increasing revenues from either employee contributions or taxes.

For a copy of the full brief, visit http://tinyurl.com/fundingslpensions.

Visit http://tinyurl.com/slgpensions for the Center's other publications on state and local government pensions.

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