Administration June 7, 2010
Municipal Pension Funds Losing Ground
June 7, 2010 (PLANSPONSOR.com) – A new study of municipal finances finds that most major U.S. cities suffered a “marked deterioration” in their pension funding status from a median of 79% in 2008 to 64% a year later.
Reported by Fred Schneyer
The research, by The Pew Charitable Trusts’ Philadelphia Research Initiative, found that in most cases, the shortfall will require officials to shift funds away from city services into pension programs.
The study found Seattle had the biggest decline, down 22 points to 64%. Pittsburgh’s pension was in the worst shape at 34% funded. Los Angeles’ was in the best shape at 90%, while Philadelphia’s ratio fell from 55% to 45%.
The review examined Atlanta, Baltimore, Boston, Chicago, Columbus (Ohio), Detroit, Kansas City (Missouri), Los Angeles, New York, Phoenix, Pittsburgh, Seattle, and Philadelphia.
The report is available here.
You Might Also Like:
Benefits |
Despite Savings Shortfall for Public Sector Workers, Automatic Options Yet to Catch On
Research from the MissionSquare Research Institute shows that with defined benefit pensions not providing enough for full retirement, plan design...
State Pensions’ Funded Status Jumped in 2021
While state pensions reached their highest funded status in six years, market volatility and declining markets signal potential difficulty ahead.
CalPERS Offers Pre-Funding Trust to State Public Employers
Public employers can choose how much to contribute towards other post-employment benefits (OPEB) costs and choose from two asset allocations.