Report finds funding shortfall to grow to 1.4 trillion in 2022, erasing nearly half of the gains from 2021’s record investment returns; three-year funding trend remains net positive.
NEW YORK, July 20, 2022 /PRNewswire/ — State and municipal retirement systems are on track to lose nearly half of 2021’s once-in-a-century investment returns in 2022, according to Equable Institute’s annual State of Pensions report. Following a year of record investment gains and economic growth, unfunded liabilities dipped below $1 trillion in 2021, bringing the aggregate funded ratio to 84.8%, the analysis finds. However, Equable estimates that the aggregate funded ratio for U.S. public pension funds will decline to 77.9% in 2022 and unfunded liabilities will increase to $1.4 trillion — the largest single-year decline in funded ratio since the Great Recession.
Yahoo Finance
Wed, July 20, 2022