Discounting liabilities at the riskless rate would reduce the funded status to the 50% range, according to the CRR’s Issue Brief.
The survey also found that local plans are more expensive than state plans, but they have done a better job of making their annual required contributions. Pension payments by local governments are about 8% of their total budgets.
Only 40% of local payments go to local plans; the other 60% go to state plans that cover local workers, primarily teachers.
The study included 97 locally-administered plans from 40 states.The Issue Brief can be downloaded from http://crr.bc.edu/briefs/an_update_on_locally-administered_pension_plans.html.