Key Takeaways
- The aggregate median funded ratio for U.S. local government (LG) pensions increased to 80% in fiscal 2024 from 78% in fiscal 2022; municipalities saw a bigger jump than counties and school districts.
- Pension costs for municipalities and school districts typically have a greater impact on the issuer credit rating, but counties generally have lower pension costs and their ratings are less directly affected.
- Recent market returns have helped shore up funded ratios, but LGs have also generally increased contributions in fiscal 2024, thereby improving funding discipline, and have made effective changes to their benefit structure, supporting long-term financial sustainability.
16-Sep-2025 | 11:09 EDT