The Status of Local Government Pension Plans in the Midst of COVID-19
Source: Center for Retirement Research
The update’s key findings are:
Despite the recent market recovery, during fiscal year 2020, local government pension plans will see virtually no change in their average funded ratio.
And, going forward, the strains on government finances due to the recession could make it harder for localities to pay their required pension contributions.
But projections show that local plans are quite sustainable on a cash-flow basis. Most can pay benefits indefinitely at their current contribution levels.
The only exceptions are the very worst-funded plans, which face the real risk of exhausting their assets.
ABOUT IPPFA
The IPPFA was founded in 1985 as a not-for-profit organization whose mandate was to educate public pension fund trustees. In 2009 the IPPFA became the primary education provider for public pension fund trustees in the state of Illinois. Our members manage over eighteen billion dollars in pension assets.