State and Local Government Pension Funding on the Eve of the COVID-19 Recession
Keyword(s):
This article examines the funding of public pension plans through 2019. Particular attention is paid to the impact of the Governmental Accounting Standards Board’s Standard No. 68. It addressed (1) discount rates, (2) amortization periods, (3) asset valuation and smoothing, and (4) the actuarial cost method used. The combined effect of these measures has been to increase the amount of public pension underfunding significantly. The actuarial funded ratio of the 126 plans in the Public Plans Database went from 101.9 in 2001 to 71.9 in 2019, on the eve of the COVID-19 recession. It will no doubt continue to worsen in the years ahead. The extent of that likely worsening is also explored.
2019 ◽
Vol 19
(4)
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pp. 491-510
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Keyword(s):
A Longitudinal and Comparative Analysis of the Funded Status of State and Local Public Pension Plans
1995 ◽
Vol 15
(2)
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pp. 52-72
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Keyword(s):
2020 ◽
pp. 027507402095439
Keyword(s):