Study: State Worker Pension Systems in Optimum Shape Since 2008

Study: State Worker Pension Systems in Optimum Shape Since 2008

“The better decisions, the fiscal discipline, is something that states can keep doing next year and the year after,” said Pew’s David Draine, one of the report’s authors. “You can’t hope for once-in-a generation returns to occur again.”

A new study finds pension systems for state government workers are in their best shape since the Great Recession. The Pew Charitable Trusts credits a booming stock market over the past year as well as states’ longer-term steps. Those include boosting taxpayer contributions to public pension funds and reducing promised retirement benefits, particularly to newly hired workers. A healthier pension system means states are less likely to have to raise taxes or cut basic government services to pay retiree benefits. Illinois, Kentucky, New Jersey and Pennsylvania continued to have the most underfunded pension systems, although each has been trying to close the gap.

The health of public pension systems resonates beyond government employees. When the systems are poorly funded, state and local governments have to consider raises taxes or cutting basic government services to pay retirees’ pensions.

Pew estimated that state retirement systems have enough assets to pay more than 80% of their obligations, the first time since 2008 they have been so well funded.

The stock market rally that followed a freefall when the coronavirus pandemic started in 2020 has been a major factor in rebuilding the funds.

States also have been contributing more taxpayer money. Pew found that in 2014, only 17 states were contributing enough to stabilize or reduce their pension debts. But in 2019, the latest year for which full data was available, 35 states were contributing at that level.

Pew also found that the four states with the most endangered pension systems — Illinois, Kentucky, New Jersey and Pennsylvania — have been ramping up their contributions, averaging annual growth of 16%.

Illinois and New Jersey’s plans still had slightly under 40% of their required funding by 2019, Pew found. Kentucky’s funding level was under 45% and Pennsylvania’s was 58%.

South Dakota and Wisconsin had fully funded state pension systems, and several other states were close to that level. Pew’s study covered pension systems run or funded by state governments. In some states, pension funds for local governments and school districts are in worse shape.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
How Brazil is reforming a public fund to finance broadband expansion
Indy Chamber Hispanic News Council Helps Owners Thrive Amid COVID-19 – WISH-TV | Indianapolis News | Indian Weather
“Trying just to get into businesses was impossible,” Rodolfo Santamaria said. “Trying to get business around — that was very difficult. Getting into a visit — ...
Townscaper is a beautiful city-building game that has made the leap from Steam to Android
Townscaper is a beautiful city-building game that has made the leap from Steam to Android
You can watch August’s community trailer above, and as you can see, Townscaper is a gorgeous game that revolves around city building. Unlike typical mobile ...
Red Dead Redemption 2 Actor Shoots Down Call of Duty Rumors
Red Dead Redemption 2 Actor Shoots Down Call of Duty Rumors
Red Dead Redemption 2’s Arthur Morgan is one of the most respected video game characters of the last generation of gaming. Morgan’s adventures through ...
Want to trade in cryptocurrency?  Here are 9 cryptography jargons you need to understand
Want to trade in cryptocurrency? Here are 9 cryptography jargons you need to understand
5) Blockchain: It is a technology that drives Bitcoin, blockchain collects information together in groups, also known as blocks, that hold sets of information. ...
Burglars disrupted a Scarborough flat by using the victim’s laptop, eating his food, and even wearing his underpants
Burglars disrupted a Scarborough flat by using the victim’s laptop, eating his food, and even wearing his underpants
He’d also had a smoke inside the flat and did some housework while wearing the victim’s trainers and baseball cap. When the victim asked the brass-necked ...
What’s New in Chrome 94 for Android, macOS, Windows, and Linux
What’s New in Chrome 94 for Android, macOS, Windows, and Linux
The update for Google Chrome was announced through a blog post on September 21. Chrome 94 introduces HTTPS-First mode. It is available in Chrome for desktop ...
A Powerful MacBook Pro is Revealed in a New Apple Leak
A Powerful MacBook Pro is Revealed in a New Apple Leak
Yes. But that doesn’t mean the machines are equal. Illuminated Z key on Apple Keyboard (GERMANY OUT) Z key, aka Undo key when used with Command key, on an ...
Facebook using news feed to display positive stories about itself
Facebook using news feed to display positive stories about itself
Some of this pro-Facebook content was created by Facebook itself and would ultimately help improve its public image to the platform’s 3 billion global users. ...
Emory Healthcare CEO to Attend Health Connect South 2021 Key Panel |  Emory University
Emory Healthcare CEO to Attend Health Connect South 2021 Key Panel | Emory University
WHAT:Health Connect South 2021 To take part in the virtual conference, visit this link to register, free of charge.  WHEN:Thursday, Sept. 23 from 8 a.m. to 5 ...
Hawaii COVID-19 Antibody Treatments Limited Amid Scarcity |  News, Sports, Jobs
Hawaii COVID-19 Antibody Treatments Limited Amid Scarcity | News, Sports, Jobs
They are only recommended for people at the highest risk of progressing to severe COVID-19, but regulators have slowly broadened who can qualify. The list of ...
Show next
Compsmag - Latest News from tech, business and health
Logo