State and local governments contributed a record amount into public retirement systems in 2024, according to Equable Institute.
The funded ratio for U.S. state and local retirement systems in 2024 is on pace to reach 80.2%—a 6.2% increase compared with 75.5% in 2023, according to an analysis by the Equable Institute.
State and local pension plans saw investment returns average 10.3% in the past year, a “strong investment performance” compared with the average 6.87% rate of return expected for pension funds, according to Equable. Unfunded liabilities are expected to fall from $1.64 trillion in 2023 to $1.37 trillion in fiscal 2024.
However, Equable Executive Director Anthony Randazzo warned that despite strong pension fund investment returns, state and local retirement systems “remain financially fragile.”
americancityandcounty.com
by Ryan Kushner, Editor
January 8, 2025