3 Points Strong Pension Plans Share

The Center for State and Local Government Excellence released a report this week that examines what strong pension plans have in common. The Center looked at pension plans that have a funding ratio from 87.6% to 99.8%. No Texas pension system was examined. 

Attributes of strong pension plans are:

• ” a commitment to fund the annual required contribution in both good and bad financial times;

• conservative, realistic assumptions that are adjusted based on experience; and

• changes to benefit levels and contribution rates as needed.”