Local government public pensions

This article does not receive scheduled updates. If you would like to help our coverage grow, consider donating to Ballotpedia. Contact our team to suggest an update.

* * *

* * *

Public pensions
Pension health by state
Pension terms
Pensions on the ballot
State finances on the ballot

* * *

Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming

* * *

## Contents

* 1 Local pension crises
* 1.1 2013 Pew report
* 2 Reforms
* 3 State support for local government pensions
* 4 County
* 5 Municipal
* 6 School district
* 7 See also
* 8 External links
* 9 Footnotes

Local government pensions are public pension systems that cover municipal and school district employees. Local governments also face pension problems. The pension crisis is "the largest single financial issue facing state and local governments," according to David Crane, former Gov. Arnold Schwarzenegger's special adviser for jobs and economic development.[1]

A majority of states have relatively few locally-sponsored plans. Hawaii, Maine and Montana have none. A few states have more than 100 local plans. Illinois reported having 365 local plans, and Pennsylvania reported that it had 928, as of 2002.[2]

One of every five dollars collected in local taxes is now going to pay benefits for government employees.[3] Rising retiree costs are likely to have a large impact on local governments, which not only employ more workers than the state, but also dedicate most of their payrolls to police officers and firefighters, who enjoy the best benefits and earliest retirements.[1]

## Local pension crises[edit]

See also: Ten cities facing the worst of the pension crisis

A 2010 report by Northwestern University suggested that the previous estimates for unfunded pension liabilities were too low by billions of dollars. According to the report, the total unfunded liabilities for local pension plans was $574 billion dollars. This liability was in addition to the $3 trillion debt that was facing state-sponsored pension plans, though the report stated this $3 trillion was also a low estimate and that the actual unfunded liabilities for states was $5 trillion. According to projections by the report, over 25 municipalities would run out of assets by 2025.[4]

### 2013 Pew report[edit]

Sixty-one key cities across America have emerged from the Great Recession with a gap of more than $217 billion between what they had promised their workers in pensions and retiree health care and what they had saved to pay that bill, according to a 2013 report by the Pew Charitable Trusts. The cities showed a $99 billion shortfall in pensions in 2009, the most recent year with complete data, with the rest of the $118 billion shortfall for retiree health care and other benefits.[5]

According to the report, between 2007 and 2009, 16 cities consistently did well in funding their pensions, while nine cities underperformed. Milwaukee, Wisconsin had a surplus at the end of fiscal year 2009, with enough money to cover 113 percent of the city's liabilities. At the other end of the spectrum, pension systems in four cities—Charleston, West Virginia; Omaha, Nebraska; Portland, Oregon; and Providence, Rhode Island—were the most poorly funded, with Charleston trailing all the cities at 24 percent.[6]

For pensions, the 16 best performing cities included in the Pew study were: Albuquerque, New Mexico; Baltimore, Maryland; Charlotte, North Carolina; Dallas, Texas; Denver, Colorado; Des Moines, Iowa; Los Angeles, California; Milwaukee, Wisconsin; Salt Lake City, Utah; San Antonio, Texas; San Francisco, California; Seattle, Washington; Sioux Falls, South Dakota; Virginia Beach, Virginia; Washington, D.C.; and Wichita, Kansas.[7]

The nine worst performing cities included in the Pew study were: Charleston, West Virginia; Chicago, Illinois; Fargo, North Dakota; Jackson, Mississippi; Little Rock, Arkansas; New Orleans, Louisiana; Omaha, Nebraska; Philadelphia, Pennsylvania; and Portland, Oregon.[8]

## Reforms[edit]

The city of Oakland, California asked police officers in 2010 to contribute 9% of their salaries toward their pensions and to agree to a later retirement age for new hires. When the union did not agree unless the city gave it a three-year,no-layoff pledge in return, city officials laid off 80 of the city's police officers. The cuts amounted to one-tenth of the force.[1]

## State support for local government pensions[edit]

State government financial subsidies for local government plans[2]

State  | Teachers' plans - Do state governments provide any financial support for plans sponsored by local governments?  | Public safety officers - Do state governments provide any financial support for plans sponsored by local governments?  | General public employees - Do state governments provide any financial support for plans sponsored by local governments?

|
|
|

Alabama | No | No | No
Alaska | No local government plans | No | Statewide system
Arizona | No local government plans | Arizona subsidizes, within the Public Safety Personnel Retirement System, the Dept. of Public Safety member rates due to a pay raise offset agreement in FY 03 | Within the Elected Officials Retirement Plan, state and county organizations are subsidized through court fees
Arkansas | No local government plans | Statewide system | Yes, in an inadvertent way (i.e. not by specific appropriation). The normal cost for state employees is about 10%, while that of city and county employees is 14.5% and 13.6% respectively. However, all employers pay 12.54%; therefore the inadvertent subsidy.
California | No local teachers' plans | No | No
Colorado | No | Only for one closed plan, the Fire and Police Protection Association | No
Connecticut | Statewide system, state pays employer contribution | No | No
Delaware | No local teachers’ plans | Yes: for County and Municipal Police and Firefighters’ COLA fund | No
Florida | No | Local police and fire districts may vote to assess a premium on casualty and property insurance policies sold within the district for the benefit of locally administered retirement plans. The assessment is added to the state premium tax. Companies receive a credit against their tax liability for the amount of the assessment levied, so in effect the assessment is a state subsidy. The local retirement plan may use the revenue only for enhancements to retirement benefits measured against the level of benefits existing in 1997. |
Georgia | No | No | No
Hawaii | No local government plans |  |
Idaho | No | No | No
Illinois | No | No | No
Indiana | State funds teacher benefits for the pre-1996 fund; for the fund established in 1996, school districts fund the employer share. Both are statewide funds. | The state guarantees that at least 50% of local government obligations for a now-closed plan is funded through state government revenues, primarily cigarette and liquor taxes and lottery income. The plan now in effect (the 1977 Plan) does not receive a state government subsidy | No
Iowa | There is one local government plan for teachers, that of the City of Des Moines, which receives no state support | No local government plans | No
Kansas | No local government plans | No | No
Kentucky | No active local government plans | No active local government plans except one in Lexington | No active local government plans
Louisiana | No | No | No
Maine | No local government plans |  |
Maryland | No | No | No
Massachusetts | No | No | No
Michigan | No local government plans | No | No
Minnesota | The State of Minnesota provides direct aid to the St. Paul Teachers Retirement Fund Association (StPTRFA). The StPTRFA aid amount (FY 2006) was $4,803,000, or about 12.56 percent of the total noninvestment funding received by StPTRFA that year. | The state provides direct aid to the Minneapolis Firefighters Relief Association, the Bloomington Fire Department Relief Association, the Minnesota Fire Department Relief Association, and approximately 700 local volunteer firefighter relief associations. In calendar year 2005, the aid amounted to between 27% and 38% of the non-investment revenue received by the three named systems, and 77% of the non-investment revenue received by the volunteer relief associations. | The state provides direct aid to the Minneapolis Employees Retirement Fund (MERF). The MERF aid is $9,000,000 (Fiscal Year 2006), or 48.34 percent of the total non-investment funding received by MERF that year.
Mississippi | No | No | No
Missouri | No | No | No
Montana | No local government plans |  |
Nebraska | Annual state contribution to Omaha school employees' plan--0.7% of payroll plus $873,000 for FY 2004. | No | No
Nevada | No local government plans |  |
New Hampshire | No local retirement plans |  |
New Jersey | No local government plans | No | No
New Mexico | No local government plans |  |
New York | State categorical reimbursements for the New York City board of education include funding for pensions for teachers hired with the money. | No | No
North Carolina | No local government plans | A portion of court costs is directed to local retirement systems for local law enforcement officers. The state premium tax on homeowners policies for fire and lightning damage is allocated to the fire district where the house of the insured is located and can be used for supplemental retirement benefits or certain other programs to benefit firefighters at the discretion of the local fire district. | No
North Dakota | No | A portion of the state fire insurance premium tax is returned to local fire protection retirement associations. | No
Ohio | No | No | No
Oklahoma | Statewide system, employer contributions paid by district; some state tax revenues to pension fund | No | No
Oregon | No local government plans |  |
Pennsylvania | No local government retirement plans | The Commonwealth imposes a tax on the premiums of casualty and fire insurance policies sold by out-of-state insurance companies. The Municipal Pension Plan Funding Standard and Recovery Act (Act 205 of 1984) establishes the General Municipal Pension. System State Aid Program (GMPSSA) financed from the proceeds of this tax. The act provides for the allocation of this money to municipalities (excluding counties and authorities) based upon the number of full-time employees participating in municipal retirement systems. | Yes. The Commonwealth imposes a tax on the premiums of casualty and fire insurance policies sold in PA by out-of-state insurance companies. The Municipal Pension Plan Funding Standard and Recovery Act (Act 205 of 1984) establishes the General Municipal Pension System State Aid Program (GMPSSA) financed from the proceeds of this tax. The act provides for the allocation of this money to municipalities (excluding counties and authorities) based upon the number of full-time employees participating in municipal retirement systems.
Rhode Island | No local government retirement plans | No | No
South Carolina | No local government retirement plans |  |
South Dakota | No | No | No
Tennessee | Some local government education support staff are covered by local government plans There is no specific state subsidy for local governments' payment of the employer portion of teachers retirement contributions. | Some state funding for local government is intended to support personnel benefits. It may or may not be used for pension contributions. | Some state funding for local government is intended to support personnel benefits. It may or may not be used for pension contributions.
Texas | No | No | No
Utah | No local government retirement plans |  |
Vermont | No local government retirement plans |  |
Virginia | No | No | No
Washington | No local government retirement plans | No local government plans for public safely personnel. | Three city plans. No state subsidy.
West Virginia | Yes, partly through school aid formula and partly through lump sum payments to the retirement fund | Through allocation of state insurance premium tax collections, and, a share of table gaming revenues | No
Wisconsin | No | No | No
Wyoming | No local government retirement plans | No local plans | No local plans

## County[edit]

* Contra Costa County, California
* Los Angeles County, California
* Maricopa County, Arizona
* Marin County, California
* Oakland, California
* Riverside County, California
* Sacramento County, California
* San Bernardino County, California
* San Diego County, California
* Santa Clara County, California

* Duval County, Florida

* Fulton County, Georgia
* Gwinnett County, Georgia

* Champaign County, Illinois
* Cook County, Illinois
* DeKalb County, Illinois
* DuPage County, Illinois
* Kane County, Illinois
* Lake County, Illinois
* McHenry County, Illinois
* McLean County, Illinois
* Peoria County, Illinois
* Will County, Illinois
* Winnebago County, Illinois

* Douglas County, Kansas
* Johnson County, Kansas
* Sedgwick County, Kansas
* Shawnee County, Kansas
* Wyandotte County, Kansas

* Baltimore County, Maryland

* Macomb County, Michigan
* Wayne County, Michigan

* Dakota County, Minnesota

* Jackson County, Missouri
* St. Charles County, Missouri

* Bergen County, New Jersey
* Essex County, New Jersey
* Middlesex County, New Jersey
* Monmouth County, New Jersey

* Carroll County, New Hampshire
* Cheshire County, New Hampshire
* Coos County, New Hampshire
* Sullivan County, New Hampshire

* Nassau County, New York
* Kings County, New York
* New York County, New York
* Queens County, New York
* Suffolk County, New York

* Marion County, Oregon
* Multnomah County, Oregon

* Clackamas County, Oregon
* Lane County, Oregon

* Arlington County, Virginia
* Chesterfield County, Virginia
* Henrico County, Virginia

## Municipal[edit]

* Dothan, Alabama

* Phoenix, Arizona

* Jonesboro, Arkansas
* Little Rock, Arkansas

* Bell, California
* Beverly Hills, California
* Brea, California
* Costa Mesa, California
* El Segundo, California
* Fresno, California
* Hermosa Beach, California
* Los Angeles, California
* Long Beach, California
* Newport Beach, California
* Oakland, California
* Placentia, California
* Sacramento, California
* San Bernardino, California
* San Diego, California
* San Francisco, California
* San Jose, California
* Stockton, California
* Upland, California

* Aurora, Colorado

* North Haven, Connecticut

* Wilmington, Delaware

* Jacksonville, Florida

* Athens, Georgia
* Atlanta, Georgia
* Columbus, Georgia

* Barrington Hills, Illinois
* Bellwood, Illinois
* Chicago, Illinois
* Decatur, Illinois
* Galesburg, Illinois
* Joliet, Illinois
* Melrose Park, Illinois
* Oak Brook, Illinois
* Palatine, Illinois

* Fort Wayne, Indiana
* Indianapolis, Indiana
* South Bend, Indiana

* Davenport, Iowa
* Des Moines, Iowa

* Olathe, Kansas
* Wichita, Kansas

* Henderson, Kentucky
* Hopkinsville, Kentucky

* Baltimore, Maryland

* Boston, Massachusetts
* Springfield, Massachusetts

* Detroit, Michigan
* Lansing, Michigan
* Salem Township, Michigan

* Minneapolis, Minnesota

* Columbia, Missouri
* Jefferson City, Missouri
* St. Louis, Missouri
* St. Louis City, Missouri

* Lincoln, Nebraska

* Derry, New Hampshire
* Rochester, New Hampshire

* Edison, New Jersey
* Elizabeth, New Jersey
* Jersey City, New Jersey
* Newark, New Jersey
* Trenton, New Jersey

* Las Cruces, New Mexico
* Santa Fe County, New Mexico

* Delaware, New York
* Fallsburg, New York
* Kingston town, New York
* Mamakating, New York
* Monroe town, New York
* Mount Hope, New York
* New York, New York
* Rochester, New York
* Thompson, New York
* Yonkers, New York

* Cincinnati, Ohio

* Eugene, Oregon
* Portland, Oregon

* Allentown, Pennsylvania
* Erie, Pennsylvania
* Philadelphia, Pennsylvania
* Pittsburgh, Pennsylvania
* Scranton, Pennsylvania

* Central Falls, Rhode Island
* Cranston, Rhode Island
* Portsmouth, Rhode Island
* Providence, Rhode Island

* Austin, Texas
* Fort Worth, Texas
* Houston, Texas

* West Valley, Utah

* Vancouver, Washington

* Milwaukee, Wisconsin

## School district[edit]

* Deer Valley Unified School District, Arizona

* Pinellas County Schools, Florida

* Wheaton Warrenville Unit School District 200, Illinois

* Evansville-Vanderburgh School Corporation, Indiana
* Fort Wayne Community Schools, Indiana

* Wichita Public School District, Kansas

* Allegany County Public Schools, Maryland

* Lynn School Department, Massachusetts

* Elizabeth Public Schools, New Jersey
* Hamilton Township Public Schools, New Jersey
* Toms River Regional Schools, New Jersey

* Albuquerque Public Schools, New Mexico

* New York City Schools, New York

* Allentown City School District, Pennsylvania
* Central Bucks School District, Pennsylvania

* Campbell Public Schools, Virginia
* Newport News Public Schools, Virginia
* Virginia Beach, Virginia

* Appleton Area School District, Wisconsin
* Madison Metropolitan School District, Wisconsin
* Milwaukee Public Schools, Wisconsin

## See also[edit]

* Bankruptcy option for local governments
* Public v. private sector salaries
* Public employee salary
* Public employee benefits
* Government budgets

## External links[edit]

* "Public-pension pitfalls: What municipal budget troubles mean for bond investors," Washington Post, April 4, 2012

## Footnotes[edit]

1. ↑ 1.0 1.1 1.2 San Francisco Chronicle "Public pensions put state, cities in crisis" July 25, 2010
2. ↑ 2.0 2.1 National Conference of State Legislators "State Government Subsidies for Retirement Plans Sponsored by Local Governments" Jan. 2010
3. ↑ Capitol Beat OK “San Francisco pension reform initiative qualifies for November ballot” August 2, 2010
4. ↑ MacIver Institute, City of Milwaukee Pension a Ticking Time Bomb According to Northwestern Study, Oct. 12, 2010
5. ↑ Pew Center on the States, Pew Study Finds 61 Cities' Retirement Systems Face $217 Billion Gap, Jan. 14,2013
6. ↑ Pew Center on the States, Pew Study Finds 61 Cities' Retirement Systems Face $217 Billion Gap, Jan. 14,2013
7. ↑ Pew Center on the States, Pew Study Finds 61 Cities' Retirement Systems Face $217 Billion Gap, Jan. 14,2013
8. ↑ Pew Center on the States, Pew Study Finds 61 Cities' Retirement Systems Face $217 Billion Gap, Jan. 14,2013

v • e

Pension policy

Pension background|

Public pension eligibility • Public pension disclosure • State government pension liabilities • Local government public pensions • Public pension crisis • Public employee benefits • State budgets • Cost of living adjustment • Rate of return • Pension system • Defined Benefit Plan • Defined Contribution Plan • Public pension health by state

* * *

Local pension measures|

Pension measure articles • Pension Hotspots Report • Original case study on San Jose and San Diego pensions

* * *

State public pension systems|

Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming

* * *

Pension terms and definitions|

Cost of living adjustment • Defined Contribution Plan • Defined Benefit Plan • Employee and employer contributions • Rate of return • Liabilities and assets • Pension fund • Pension spiking • Unfunded liabilities

v • e

Budget policy

Budget background|

Government budgets • Cost of state transparency websites • State budget issues • Public employee salaries • Public pensions • States with spending online • Glossary of state budget terms • Total state expenditures • State spending by function as a percent of total expenditures

* * *

State budget and finance pages|

Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming

* * *

Tax policy background|

Personal income tax • Sales tax • Corporate income tax • Property tax • Excise taxes • Estate and inheritance taxes • Capital gains tax

* * *

State tax policy pages|

Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming

* * *

Comparative analysis of state debt|

Federal outlays to state government (2014-2017) • State tax revenue projections and shortfalls (2020-2021) • Proportion of state government general revenues from the federal government (2014-2018) • State debt per capita (2014-2018) • State unfunded public pension liabilities, 2003-2018

Ballotpedia

About

Overview • What people are saying • Support Ballotpedia • Contact • Contribute • Job opportunities

* * *

Executive: Leslie Graves, Founder and CEO • Gwen Beattie, Chief Operating Officer

Communications: Alison Graves, Director of Communications • Carley Allensworth • Abigail Campbell • Frank Festa • Sarah Groat • Nathaniel Harwood • Dillon Redmond
External Relations:  Geoff Pallay, Director of External Relations • Ken Carbullido, Vice President of Election Product and Technology Strategy • Ashley Fleming • Thomas Mardik • Hannah Nelson
Operations: Meghann Olshefski, Director of Operations • Amanda Herbert • Mandy Morris • Caroline Presnell • Kelly Rindfleisch
Tech: Matt Latourelle, Director of Technology Operations • Ryan Burch • Kirsten Corrao • Beth Dellea • Travis Eden • Tate Kamish • Margaret Kearney • Eric Lotto • Joseph Sanchez • Mary Susmitha

Contributors: Scott Rasmussen

* * *

Editorial Content

Josh Altic, Director of Content • Daniel Anderson, Associate Director of Elections & Data • Cory Eucalitto, Associate Director of Features • Ryan Byrne, Managing Editor of Ballot Measures • Mandy McConnell, Managing Editor of News • Doug Kronaizl, Managing Editor of Local Expansion • Abbey Smith, Managing Editor of Elections • Janie Valentine, Managing Editor of Law • Joel Williams, Managing Editor of Events • Joseph Greaney, Managing Editor of Policy • Andrew Bahl • Jaclyn Beran • Marielle Bricker • Joseph Brusgard • Emma Burlingame • Kelly Coyle • Jon Dunn • Victoria Edwards • Thomas Ellis • Nicole Fisher • Thomas Grobben • Brianna Hosea • Molly Kehoe • Tyler King • Glorie Martinez • Norm Leahy, Senior Editor • Nathan Maxwell • Jimmy McAllister • Brandon McCauley • Ellie Mikus • Ellen Morrissey • Mackenzie Murphy • Kaley Platek • Samantha Post • Adam Powell • Annelise Reinwald • Spencer Richardson • Victoria Rose • Briana Ryan • Myj Saintyl • Maddy Salucka • Emma Soukup • Alexis Thacker • Mina Vogel • Samuel Wonacott • Trenton Woodcox