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NEW YORK, Dec. 10, 2020 /PRNewswire/ Today, Equable Institute released the latest results of its analysis of statewide public pension funds in a mid-year update to State of Pensions 2020. Equable Institute forecasts that the aggregate funded ratio will decrease from 72.9% in 2019 to 69.4% in 2020, with a funding shortfall of $1.55 trillion – a marginal improvement on its previous estimate of 67.9%.
(PRNewsfoto/Equable Institute)
Equable Institute forecasts the funded ratio for public pension plans will decrease from 72.9% in 2019 to 69.4% in 2020
Preliminary investment returns for the 2020 fiscal year have near-universally come in below assumed rates of return that pension boards had set for the year, as expected. As of September 2020, the average actual return at 2.14% is well below the 7.17% that pension funds were expecting. The financial market rebound during the summer and fall drove the slight improvement in the expected degree o