OPENING LINES Source: https://www.americancityandcounty.com/, Ryan Kushner, First Published Jan 08th, 2025 State and local governments contributed a record amount into public retirement systems in 2024, according to Equable Institute. The funded ratio for U.S. state and local retirement systems in 2024 is on pace to reach 80.2%—a 6.2% increase compared with 75.5% in 2023, according to an analysis by the Equable Institute. State and local pension plans saw investment returns average 10.3% in the past year, a “strong investment performance” compared with the average 6.87% rate of return expected for pension funds, according to Equable. Unfunded liabilities are expected to fall from $1.64 trillion in 2023 to $1.37 trillion in fiscal 2024. However, Equable Executive Director Anthony Randazzo warned that despite strong pension fund investment returns, state and local retirement systems “remain financially fragile.” “With only 80% of necessary assets in pension funds, there are significant contribution increases necessary to get more of today’s $1.37 trillion in pension debt paid off before another financial crisis strikes,” Randazzo stated. State and local governments contributed a record amount into public retirement systems in 2024, averaging 31.3% of payroll, or $180.7 billion, PUBLIC PENSION FUNDING REMAINS “FRAGILE” BUT SHOWED IMPROVEMENT IN 2024 9 BUSINESS VIEW MAGAZINE VOLUME 12, ISSUE 01
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