Funding Ratio for State Pensions Plans Lowest in 30 Years

At the end of 2019, public pension funds across the country had a funded status of nearly 75% (according to an unofficial estimate from Wilshire Consulting). This was driven by growth in investments between the summer of 2019 – when pension funds were officially closer to 72% funded – and the end of the calendar year. But after financial markets collapsed in March, the collective funded ratio of public pension funds fell to 62.6%, according to the same unofficial Wilshire estimate. Financial markets rebounded in April, meaning that funded status will improve by the time we get an official measurement as of June 30, 2020. But markets won’t have fully recovered. This report signals just how bad things have gotten for public pension plans. To understand more about funded status, check out our learning center.