Key Takeaways
- We expect U.S. public pension funded ratios will generally improve when measured as of the fiscal year ended June 30, 2024, and continue to improve in fiscal 2025 because of positive market results in the first half.
- U.S. public pensions face growing risks because assets funding the plans are based on increasingly diverse and opaque allocations.
- We expect pension contributions will increase due to inflation-driven salary growth, partially offset by cheaper new benefit tiers, a frequently used tactic that may no longer be viable.
4 Feb, 2025