3 Points. New Report. State Pensions Meet Their Obligations. + 4 Recommendations

The report is by: National Conference on Public Employee Retirement Systems

3 Conclusions from the state and local pension obligation report:

•  state and local pension plans have been able to meet their obligations consistently over the past 25 years
• contributions and investment earnings by 6,000 public pension plans between 1993 and 2016 exceeded benefit obligations in all but four years of the national recession
• during the recession, the pensions were able to meet their obligations because they had built up reserves during normal times

4 recommendations

• Stop dismantling plans on grounds that they are not fully funded.

• Improve funding by determining the appropriate levels of required employer contributions.

• Establish a pension stabilization fund that can set aside money from a certain revenue stream to be used in special circumstances, such as a recession.

• Implement a mechanism to ensure that full employer contributions are made on a timely basis, for example, by making employer contributions a nondiscretionary part of the budget.

Chief Investment Officer | Report: Public Pension Plans Consistently Meet Obligations