Why Does Funding Status Vary Among State and Local Plans?
Posted on: Wednesday, 7 May 2008, 18:00 CDT
WASHINGTON, May 7 /PRNewswire/ -- The Center for State and Local Government Excellence has issued its sixth issue brief on retirement plans, The Miracle of Funding by State and Local Pension Plans. The brief, which was written by Alicia H. Munnell, Kelly Haverstick, and Jean-Pierre Aubry of the Center for Retirement Research at Boston College, finds that:
-- Although most public pension plans are in good shape, funding ratios do vary. -- About 60 percent of plans are adequately funded, while about 40 percent are not. -- Better funding is associated with the following factors: -- Disciplined approach -- the plan has an extended funding history, uses a more rigorous cost method, and makes its annual required contributions; -- Good governance -- the plan has an independent investment council; -- Size and type of plan -- the plan is large and does not include teachers; and -- Fiscal health -- the plan is in a state with a relatively low debt burden.
For a copy of the full brief visit http://www.slge.org/index.asp?Type=B_BASIC&SEC={6B5D32FD-C99D-41F7-9691- 4F1B1D11452B}&DE=%20 (Due to length of URL, please copy and paste into browser.)
About the Center for State and Local Government Excellence
The Center for State and Local Government Excellence helps state and local governments become knowledgeable and competitive employers so they can attract and retain a talented and committed workforce. The Center identifies best practices and conducts research on competitive employment practices, workforce development, pensions, retiree health security, and financial planning. The Center also brings state and local leaders together with respected researchers and features the latest demographic data on the aging workforce, research studies, and news on health care, recruitment, and succession planning on its website, http://www.slge.org/.
Center for State and Local Government Excellence
CONTACT: Amy Mayers of Center for State and Local Government Excellence,+1-202-682-6102, amayers@slge.org
Web site: http://www.slge.org/
Source: PRNewswire
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