The NIRS notes that the markets rebounded better this year after the COVID-19 pandemic hit than they did during the 2008 Great Recession. “However, there are concerns that cash-strapped governments will cut back on funding required contributions to public pension plans,” the institute says in the report.
The collection of funding actions that the report summarizes run the gamut—from implementing a wholesale funding strategy for a large statewide plan to more targeted reforms that simply increase participating employers’ control of how costs are paid over time. These innovative strategies extend well beyond the oft-cited annual required contributions or actuarially determined employer contribution (ADEC).