Updated
Updated · Bloomberg · Jul 23
US Public Pension Funds Reach 85% Benefit Coverage, Highest Since 2009
Updated
Updated · Bloomberg · Jul 23

US Public Pension Funds Reach 85% Benefit Coverage, Highest Since 2009

3 articles · Updated · Bloomberg · Jul 23

Summary

  • 85% of promised benefits were covered by US public pension assets as of June 30, up from 81.2% a year earlier and marking the strongest funding level since 2009.
  • Soaring stock markets and larger government contributions drove the improvement, lifting retirement fund asset values across public plans.
  • The Equable Institute said the gains still leave many pension systems short of full funding and exposed to a market downturn.
  • The rebound pushes public pension funding to its best point since the Global Financial Crisis, underscoring both recent progress and lingering vulnerability.

Insights

Public pensions report 85% funding, but why would standard accounting rules show them as less than 50% funded?
Why are Canadian pensions over 100% funded while US funds struggle, and what is their secret to success?
With pensions at a 15-year high, why are they one market crash away from a multi-trillion dollar disaster?