State and local pension plans are well funded, report says
State and local government pension plans are as well funded as private plans, according to a report from the Washington-based Center for State and Local Government Excellence. The authors of the report call the pension funding status “miraculous” because public plans pay larger benefits, use a more stringent funding yardstick than private plans and are not subject to mandatory national funding standards.
State and local pension plans have assets to cover 90 percent of liabilities, according to the report, “The Miracle of Funding by State and Local Pension Plans.” The report states that standards set by the Norwalk, Conn.-based Government Accounting Standards Board in the 1990s led to an increase in the amount of assets available to each worker. The entire report is available at http://www.slge.org.