The funded status for state and local pension plans improved in 2024, propelled forward by solid financial market performance. Yet, public pension plans are still in a fragile financial condition. Between 2023 and 2024, the average market valued public pension funded ratio increased from 75.5% up to 80.2% and once all public pension plans release their 2024 data, we estimate that unfunded liabilities will be $1.37 trillion.

This marks 18 consecutive years with an average funded ratio below 90%, the minimum threshold for pension plans to be considered resilient.

This year’s 10.3% average investment return is better than the average assumed rate of return that public plans were using last year (6.87%), but it is less than the performance of most major public equity indices like the S&P 500. Generally, this can be attributed to the poor performance of fixed income investments over the last year. For example the return for Barclay’s U.S. Aggregate Bond Index was effectively 0% for the 2024 calendar year.

There’s no question that the aggregate funded status for public pension plans while improved is still mediocre. But, funded ratios and unfunded liabilities vary widely across states and plans. Below, we look at public pension funded ratios ranked by plan and by state.

State of Pensions 2024 | State Funded Status Rankings | Plan Funded Status Details

The Top 15 Plans by Funded Status for 2024

The best funded pension plans, as of fiscal year 2024, have a few things in common. Recently designed plans with cost-sharing components, plans with risk-sharing tools, and legacy plans with a multi-decade history of strong funded status all fared well.

The Bottom 15 Plans by Funded Status for 2024

The worst funded pension plans are largely from Illinois, New Jersey, Connecticut, and Kentucky. Among the worst are a few plans funded on a pay-as-you-go basis. Here are the 15 worst pension plans by funded ratio.

*Estimate based partially on reported preliminary returns and partially on asset allocation and benchmark returns.
**Estimate based on asset allocation and benchmark returns.

2024 Funded Status by State

A Full List of Plans by 2024 Funded Status