Before the coronavirus pandemic, state public pension debt was already over $1 trillion nationally and growing. Although the long-term effects of the pandemic and economic downturn are unclear, initial estimates from the Pension Integrity Project at Reason Foundation suggest that public pension plans could see their unfunded liabilities skyrocket to between $1.5 trillion and $2 trillion if the latest returns fall between 0 percent and -15 percent for the current fiscal year.
As states and cities prepare to face mounting budget challenges, we can help you understand what impact the COVID-19 economic crisis will have on public pension plans across the nation.
In the tool [available by following the link], choose your preferred state public pension plans and investment return rate to see how their unfunded liabilities and funded ratios are being impacted by the market and economic downturn.
Read the rest of the report at the Reason Foundation.
This article republishes selections from “Previewing the COVID-19 Impact on State Pension Plans” an article by the Pension Integrity Project for Reason Foundation, 4/22/2020.