Pensions
US Public Pensions’ Funded Ratio Soars to Record in Q4
The number of plans with funded levels above 90% nearly doubled during the final quarter of 2020.
Despite returns of nearly 13%, US corporate plans’ funded level remained flat for the year, thanks to falling rates, Willis says.
But financial strains on governments could make it harder to pay required contributions.
Funded levels fluctuated from 85% down to 72% and back up to 82% during first six months of the year.
Asset gain of $308 billion in April-June period lifts estimated funded ratio to 71.2% from 66%.
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Market downturn could be the final straw for struggling public pension plans.
Retirement systems will struggle with meeting their required contribution targets, Pew report says.