State Retirement Fiscal Health and Funding Discipline
The funding gap between state pension system assets and benefits promised to workers reached $1.24 trillion in 2018.
Underfunded public pension systems have become a significant fiscal challenge facing states and municipalities.
Although some plans for public workers are well-funded, others failed to set aside enough money to fund the pension promises made to public employees and took on risks that they weren’t able to manage.
$2.98 trillion
2018 total investments
71%
2018 funded ratio
$4.22 trillion
2018 total pension liabilities
Funded Ratio for U.S. Public Sector Plans Over Time
Widening gap between assets and liabilities mean financial challenges ahead for some states
The gap between what state pension systems have set aside to fund promised benefits and what they will need to pay for them has grown since 2007.
Average Annual Stock Market and Pension Fund Returns, –
Equity investment returns and pension fund yields track closely and are highly volatile
Most pension funds invest in a variety of asset classes as part of a diverse portfolio. Still, overall returns closely follow the movement of the U.S. stock market.
Explore the Data
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Indicators
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State Profile
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State Comparison
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50 State Overview
View how pension debt has changed over the past decade at a high level.
ADDITIONAL RESOURCES
Fact Sheet
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