{"id":269997,"date":"2021-06-09T00:48:00","date_gmt":"2021-06-08T21:48:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/u-s-public-sector-pension-funding-improved-during-the-pandemic-year\/"},"modified":"2021-06-09T00:48:00","modified_gmt":"2021-06-08T21:48:00","slug":"u-s-public-sector-pension-funding-improved-during-the-pandemic-year","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/u-s-public-sector-pension-funding-improved-during-the-pandemic-year\/","title":{"rendered":"#\n  U.S. public sector pension funding improved during the pandemic year"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4ec794a9e04\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4ec794a9e04\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/u-s-public-sector-pension-funding-improved-during-the-pandemic-year\/#But_because_workforces_are_so_much_leaner_governments_will_have_to_contribute_more_in_funding\" >But because workforces are so much leaner, governments will have to contribute more in funding<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/u-s-public-sector-pension-funding-improved-during-the-pandemic-year\/#Andrea_Riquier\" >Andrea Riquier<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  U.S. public sector pension funding improved during the pandemic year<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"But_because_workforces_are_so_much_leaner_governments_will_have_to_contribute_more_in_funding\"><\/span>\n  But because workforces are so much leaner, governments will have to contribute more in funding<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000299125\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       What a difference a year makes.<\/p>\n<p> In May of 2020, things looked dire for states and local governments, and many analysts were nervous about the state of public sector pension funding. <\/p>\n<p>But 13 months later, the worst fears about municipal budgets haven\u2019t panned out, Washington is pushing billions of dollars of fiscal stimulus money downstream, and stock market  returns have trounced what even the most bullish analysts expected.<\/p>\n<div class=\"paywall\">\n       Taken together, it means that the funded status of public pension plans has improved, according to a report from one of the most closely-watched groups tracking pensions. The <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/crr.bc.edu\/wp-content\/uploads\/2021\/06\/SLP78.pdf\" class=\"icon none\">Center for Retirement Research at Boston College\u2019s 2021 update<\/a> estimates the aggregate level of funding among public-sector plans at 74.7%, up from 72.8% last year.<\/p>\n<p>The \u201cfunding status\u201d of a pension plan refers to how many assets it has on hand, compared to its current and future liabilities when employees retire. Public-sector pensions get inputs from employee paychecks and from employer contributions.<\/p>\n<p>But they also rely on gains from their investments. Compounded over many years, those gains (or losses) account for roughly 2\/3 of overall pension returns. Over the past year, stocks have surged: the S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+0.02%<\/bg-quote><br \/>\n       gained 79% from its 2020 nadir. That\u2019s been a boon for many retirement plans. The <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.osc.state.ny.us\/press\/releases\/2021\/05\/dinapoli-33-point-55-percent-annual-investment-return-new-york-state-pension-fund-largest-its-history\" class=\"icon none\">New York State Common Retirement Fund saw a 33.5% <\/a>return for its fiscal year ending March 31, the largest in its history, while <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nwaonline.com\/news\/2021\/jun\/08\/teacher-fund-ends-quarter-783m-higher\/\" class=\"icon none\">the Arkansas Teacher Retirement System gained 38.8%<\/a>.<\/p>\n<p>Even so, the aggregate contribution that state and local governments must make rose during the past year, to 22% of payroll, from 21.3%. That\u2019s largely because of the enormous loss of workforce as a result of the crisis, the BC researchers note. Governments cut nearly 1.5 million workers in the six month span from March to August 2020, which is roughly the same number of layoffs throughout the 2008-2009 recession.<\/p>\n<p>Contribution rates must rise because the payroll base has shrunk.<\/p>\n<p><strong>Read next:<\/strong> Local-government employment in the U.S. is at a 19-year low<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Andrea Riquier\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Andrea_Riquier\"><\/span>Andrea Riquier<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-7490-7525D3B0F6D7%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# U.S. public sector pension funding improved during the pandemic year &#8221; But because workforces are so much leaner, governments will have to contribute more in funding What a difference a year makes. In May of 2020, things looked dire for states and local governments, and many analysts were nervous about the state of public&#8230;<\/p>\n","protected":false},"author":1,"featured_media":269998,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-269997","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/269997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=269997"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/269997\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/269998"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=269997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=269997"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=269997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}