Public pensions

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

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Public pensions provide monetary beneﬁts to public workers when they retire. State pension systems vary considerably in their organization, management, and accounting principles, making them difficult to compare. The data below comes primarily from the United States Census Bureau.

HIGHLIGHTS

* According to the United States Census Bureau, as of fiscal year 2016, there were a total of 6,276 public pension systems with 20,924,361 members among them.

* Contributions to public pension systems in fiscal year 2016 totaled $191 billion, with 73.36 percent coming from government sources.

* Public pension systems made $303 billion in payments in fiscal year 2016.

## Contents

* 1 Contributions and payments
* 2 Membership and participation
* 3 Cash and investment holdings
* 4 Plan types
* 4.1 Defined benefit plans
* 4.2 Defined contribution plans
* 4.3 Hybrid plans
* 5 Pension health
* 6 See also
* 7 External links
* 8 Footnotes

## Contributions and payments[edit]

In fiscal year 2016, contributions to public pension systems in the United States totaled $191.6 billion. Of this total, $140.6 billion, or 73.36 percent, came from governments, while the remainder came from employee contributions. The map below compares government contributions to public pension plans as percentages of total contributions. For states shaded with darker colors, government contributions constituted a greater share of total contributions. For states shaded with lighter colors, government contributions constituted a smaller share of total contributions. The table below the map provides further details about contributions to public pensions. To see the data in the table, click "[show]" in the table header.[1]

Government contributions to public pensions as percentages, fiscal year 2016

Pension contributions, fiscal year 2016 (dollars in thousands)

State  | Total contributions from employees and employers  | Employee contributions  | Government contributions  | Earnings on investments
Contributions  | Percentage of total  | Contributions  | Percentage of total
Alabama | $2,007,470 | $755,222 | 37.62% | $1,252,248 | 62.38% | $3,302,753
Alaska | $625,106 | $139,668 | 22.34% | $485,438 | 77.66% | -$44,775
Arizona | $3,209,191 | $1,294,434 | 40.34% | $1,914,757 | 59.66% | $500,886
Arkansas | $1,065,119 | $218,305 | 20.50% | $846,815 | 79.50% | $27,136
California | $37,782,331 | $10,368,063 | 27.44% | $27,414,268 | 72.56% | $5,281,330
Colorado | $2,506,330 | $832,200 | 33.20% | $1,674,130 | 66.80% | $939,477
Connecticut | $3,862,526 | $603,345 | 15.62% | $3,259,181 | 84.38% | $311,621
Delaware | $380,369 | $75,318 | 19.80% | $305,051 | 80.20% | -$116,355
Florida | $5,207,324 | $1,096,320 | 21.05% | $4,111,003 | 78.95% | $866,763
Georgia | $3,789,850 | $869,000 | 22.93% | $2,920,850 | 77.07% | $1,130,340
Hawaii | $993,360 | $236,802 | 23.84% | $756,558 | 76.16% | -$131,283
Idaho | $568,357 | $221,496 | 38.97% | $346,861 | 61.03% | $259,308
Illinois | $13,902,184 | $2,771,651 | 19.94% | $11,130,532 | 80.06% | $1,531,618
Indiana | $2,303,721 | $339,243 | 14.73% | $1,964,478 | 85.27% | $501,367
Iowa | $1,331,002 | $525,334 | 39.47% | $805,668 | 60.53% | $723,429
Kansas | $2,237,566 | $423,589 | 18.93% | $1,813,977 | 81.07% | $135,069
Kentucky | $2,209,661 | $632,865 | 28.64% | $1,576,796 | 71.36% | -$167,010
Louisiana | $3,454,482 | $763,863 | 22.11% | $2,690,618 | 77.89% | $25,416
Maine | $528,115 | $167,157 | 31.65% | $360,958 | 68.35% | $126,110
Maryland | $3,814,858 | $971,673 | 25.47% | $2,843,185 | 74.53% | $870,964
Massachusetts | $5,919,441 | $2,239,597 | 37.83% | $3,679,844 | 62.17% | $859,968
Michigan | $5,265,114 | $656,891 | 12.48% | $4,608,223 | 87.52% | $4,086,282
Minnesota | $2,349,847 | $1,036,312 | 44.10% | $1,313,534 | 55.90% | $20,259
Mississippi | $1,630,035 | $574,963 | 35.27% | $1,055,072 | 64.73% | $203,223
Missouri | $3,472,589 | $988,265 | 28.46% | $2,484,324 | 71.54% | $1,177,184
Montana | $523,372 | $193,868 | 37.04% | $329,504 | 62.96% | $278,236
Nebraska | $781,042 | $316,806 | 40.56% | $464,236 | 59.44% | $213,909
Nevada | $1,705,450 | $129,811 | 7.61% | $1,575,639 | 92.39% | $814,150
New Hampshire | $601,874 | $208,299 | 34.61% | $393,575 | 65.39% | $81,669
New Jersey | $5,179,153 | $2,048,792 | 39.56% | $3,130,361 | 60.44% | -$1,929,550
New Mexico | $1,338,202 | $553,634 | 41.37% | $784,568 | 58.63% | $629,250
New York | $19,680,818 | $1,495,543 | 7.60% | $18,185,275 | 92.40% | $6,497,961
North Carolina | $3,028,704 | $1,261,098 | 41.64% | $1,767,606 | 58.36% | $920,572
North Dakota | $366,624 | $131,600 | 35.90% | $235,024 | 64.10% | $44,710
Ohio | $7,584,574 | $3,272,508 | 43.15% | $4,312,066 | 56.85% | $1,085,054
Oklahoma | $1,800,280 | $446,465 | 24.80% | $1,353,815 | 75.20% | -$260,811
Oregon | $1,753,675 | $584,264 | 33.32% | $1,169,411 | 66.68% | $986,070
Pennsylvania | $7,813,672 | $1,836,714 | 23.51% | $5,976,958 | 76.49% | $1,553,353
Rhode Island | $781,956 | $139,793 | 17.88% | $642,163 | 82.12% | $36,533
South Carolina | $2,153,131 | $872,339 | 40.51% | $1,280,792 | 59.49% | $90,957
South Dakota | $251,007 | $120,368 | 47.95% | $130,639 | 52.05% | $53,223
Tennessee | $1,779,692 | $362,971 | 20.40% | $1,416,722 | 79.60% | $1,240,182
Texas | $11,342,823 | $4,829,015 | 42.57% | $6,513,808 | 57.43% | $10,346,999
Utah | $1,195,255 | $41,788 | 3.50% | $1,153,467 | 96.50% | $505,776
Vermont | $244,665 | $91,075 | 37.22% | $153,590 | 62.78% | $60,803
Virginia | $4,175,904 | $1,009,944 | 24.19% | $3,165,961 | 75.81% | $2,396,280
Washington | $3,224,551 | $941,774 | 29.21% | $2,282,777 | 70.79% | $1,995,485
West Virginia | $1,157,109 | $127,478 | 11.02% | $1,029,631 | 88.98% | $329,387
Wisconsin | $2,075,028 | $986,585 | 47.55% | $1,088,443 | 52.45% | -$239,932
Wyoming | $344,176 | $169,143 | 49.14% | $175,033 | 50.86% | -$28,959
United States | $191,623,192 | $51,041,484 | 26.64% | $140,581,708 | 73.36%  | $49,852,505
Source: United States Census Bureau

Public pension systems in the United States paid out a total of $303.6 billion in fiscal year 2016. The table below details the payments in each state. To see the data in the table, click "[show]" in the table header.[1]

Pension payments, fiscal year 2016 (dollars in thousands)

State  | Total payments  | Benefits  | Withdrawals  | Other
Alabama | $3,678,636 | $3,503,063 | $124,097 | $51,476
Alaska | $1,267,543 | $1,213,921 | $11,916 | $41,705
Arizona | $4,625,373 | $4,136,303 | $314,709 | $174,362
Arkansas | $1,848,848 | $1,712,599 | $26,924 | $109,328
California | $52,270,240 | $48,887,554 | $599,132 | $2,783,553
Colorado | $5,291,653 | $4,830,448 | $188,630 | $272,578
Connecticut | $4,797,555 | $4,691,398 | $63,187 | $42,966
Delaware | $680,524 | $669,484 | $6,222 | $4,818
Florida | $11,830,922 | $10,960,805 | $81,132 | $788,977
Georgia | $7,132,093 | $6,818,699 | $170,195 | $143,200
Hawaii | $1,297,563 | $1,232,590 | $12,928 | $52,045
Idaho | $922,145 | $839,505 | $32,308 | $50,332
Illinois | $18,658,398 | $17,598,347 | $329,236 | $730,845
Indiana | $2,822,671 | $2,524,520 | $78,958 | $219,193
Iowa | $2,181,584 | $2,033,158 | $50,345 | $98,083
Kansas | $1,860,607 | $1,699,315 | $69,674 | $91,618
Kentucky | $4,077,013 | $3,833,078 | $61,872 | $182,067
Louisiana | $4,655,139 | $4,241,142 | $136,832 | $277,166
Maine | $977,015 | $869,201 | $21,970 | $85,844
Maryland | $5,210,842 | $5,025,390 | $86,468 | $98,985
Massachusetts | $6,953,546 | $6,312,768 | $184,085 | $456,697
Michigan | $8,877,929 | $8,624,197 | $104,330 | $149,392
Minnesota | $4,706,365 | $4,579,968 | $30,484 | $95,915
Mississippi | $2,655,600 | $2,433,506 | $113,010 | $109,084
Missouri | $5,588,421 | $4,859,785 | $118,364 | $610,269
Montana | $833,798 | $746,045 | $19,032 | $68,722
Nebraska | $1,106,087 | $944,559 | $101,691 | $59,838
Nevada | $2,287,691 | $2,209,498 | $26,764 | $51,429
New Hampshire | $752,570 | $695,338 | $24,394 | $32,838
New Jersey | $10,435,636 | $10,095,506 | $282,484 | $57,645
New Mexico | $2,182,503 | $2,014,336 | $84,025 | $84,141
New York | $31,872,176 | $29,828,070 | $279,619 | $1,764,486
North Carolina | $6,184,130 | $5,562,289 | $175,968 | $445,872
North Dakota | $396,417 | $363,183 | $14,239 | $18,995
Ohio | $15,886,846 | $14,957,559 | $604,797 | $324,492
Oklahoma | $2,493,743 | $2,317,742 | $58,319 | $117,682
Oregon | $5,343,496 | $4,726,661 | $13,569 | $603,264
Pennsylvania | $12,812,898 | $11,925,127 | $110,883 | $776,893
Rhode Island | $1,227,000 | $1,187,798 | $8,050 | $31,153
South Carolina | $3,462,282 | $3,071,288 | $113,031 | $277,963
South Dakota | $565,254 | $534,644 | $24,403 | $6,207
Tennessee | $3,280,554 | $3,070,441 | $78,079 | $132,035
Texas | $17,229,465 | $15,850,841 | $798,168 | $580,458
Utah | $1,448,658 | $1,432,480 | $4,773 | $11,405
Vermont | $341,806 | $323,492 | $6,712 | $11,601
Virginia | $6,119,324 | $5,499,268 | $117,875 | $502,179
Washington | $4,529,070 | $4,095,359 | $76,927 | $356,783
West Virginia | $1,125,120 | $1,076,903 | $22,852 | $25,363
Wisconsin | $5,796,298 | $5,324,949 | $43,829 | $427,520
Wyoming | $539,986 | $509,447 | $24,277 | $6,262
United States | $303,584,227 | $282,899,300 | $6,145,247 | $14,539,710
Source: United States Census Bureau

## Membership and participation[edit]

According to the United States Census Bureau, there were a total of 6,276 public pension systems across the nation as of fiscal year 2016. Of those systems, 299 were administered at the state level, and 5,977 at the local level. In those 6,276 systems, a total of 20.9 million people were members. Of these members, 70.02 percent were active. Active members are defined as members who are making contributions or receiving benefits from a pension system. The map below details what percentage of members are active in each state; a darker shade indicates a higher percentage of active members while a lighter shade indicates a lower percentage of active members. The table below the map provides further details for each state. Click "[show]" in the table below to display the data.[1]

Active membership in public pension plans as percentages, 2016

General pension system information, 2016

State  | Systems  | Total members  | Active members  | Inactive members
State  | Local  | Members  | Percent of total  | Members  | Percent of total
Alabama | 7 | 17 | 262,612 | 236,550 | 90.08% | 26,061 | 9.92%
Alaska | 4 | 2 | 36,706 | 25,704 | 70.03% | 11,002 | 29.97%
Arizona | 4 | 95 | 487,795 | 257,183 | 52.72% | 230,612 | 47.28%
Arkansas | 7 | 176 | 172,888 | 138,606 | 80.17% | 34,282 | 19.83%
California | 10 | 77 | 2,519,484 | 1,813,942 | 72.00% | 705,542 | 28.00%
Colorado | 10 | 65 | 478,955 | 240,329 | 50.18% | 238,627 | 49.82%
Connecticut | 6 | 206 | 176,674 | 154,380 | 87.38% | 22,294 | 12.62%
Delaware | 8 | 17 | 50,958 | 46,494 | 91.24% | 4,464 | 8.76%
Florida | 1 | 476 | 736,993 | 605,108 | 82.10% | 131,885 | 17.90%
Georgia | 11 | 45 | 630,350 | 403,940 | 64.08% | 226,409 | 35.92%
Hawaii | 1 | N/A | 75,118 | 67,377 | 89.69% | 7,741 | 10.31%
Idaho | 3 | 3 | 100,437 | 68,572 | 68.27% | 31,865 | 31.73%
Illinois | 6 | 654 | 972,667 | 597,507 | 61.43% | 375,160 | 38.57%
Indiana | 9 | 239 | 321,915 | 219,157 | 68.08% | 102,757 | 31.92%
Iowa | 4 | 8 | 240,589 | 173,269 | 72.02% | 67,320 | 27.98%
Kansas | 4 | 11 | 206,896 | 155,588 | 75.20% | 51,308 | 24.80%
Kentucky | 6 | 26 | 391,735 | 209,401 | 53.45% | 182,334 | 46.55%
Louisiana | 14 | 17 | 310,419 | 199,702 | 64.33% | 110,717 | 35.67%
Maine | 1 | N/A | 61,361 | 51,221 | 83.47% | 10,140 | 16.53%
Maryland | 7 | 72 | 310,489 | 251,758 | 81.08% | 58,731 | 18.92%
Massachusetts | 14 | 92 | 398,124 | 316,427 | 79.48% | 81,698 | 20.52%
Michigan | 6 | 142 | 325,344 | 290,101 | 89.17% | 35,242 | 10.83%
Minnesota | 12 | 584 | 587,975 | 315,565 | 53.67% | 272,410 | 46.33%
Mississippi | 4 | N/A | 297,545 | 154,767 | 52.01% | 142,778 | 47.99%
Missouri | 12 | 78 | 392,449 | 291,051 | 74.16% | 101,399 | 25.84%
Montana | 9 | 92 | 83,483 | 53,703 | 64.33% | 29,780 | 35.67%
Nebraska | 5 | 26 | 110,356 | 78,024 | 70.70% | 32,333 | 29.30%
Nevada | 3 | 0 | 120,999 | 105,317 | 87.04% | 15,682 | 12.96%
New Hampshire | 2 | 3 | 60,896 | 49,483 | 81.26% | 11,413 | 18.74%
New Jersey | 8 | 9 | 553,464 | 448,524 | 81.04% | 104,940 | 18.96%
New Mexico | 5 | N/A | 175,002 | 118,188 | 67.54% | 56,814 | 32.46%
New York | 3 | 6 | 1,400,494 | 1,210,864 | 86.46% | 189,630 | 13.54%
North Carolina | 7 | 63 | 705,930 | 496,487 | 70.33% | 209,444 | 29.67%
North Dakota | 4 | 14 | 42,570 | 35,254 | 82.81% | 7,316 | 17.19%
Ohio | 7 | 1 | 1,315,652 | 661,497 | 50.28% | 654,155 | 49.72%
Oklahoma | 7 | 14 | 190,853 | 158,936 | 83.28% | 31,916 | 16.72%
Oregon | 2 | 17 | 310,340 | 264,309 | 85.17% | 46,031 | 14.83%
Pennsylvania | 3 | 2258 | 677,508 | 503,644 | 74.34% | 173,864 | 25.66%
Rhode Island | 5 | 34 | 49,527 | 39,399 | 79.55% | 10,128 | 20.45%
South Carolina | 4 | 6 | 394,983 | 214,599 | 54.33% | 180,384 | 45.67%
South Dakota | 2 | 2 | 58,579 | 40,957 | 69.92% | 17,622 | 30.08%
Tennessee | 2 | 39 | 401,425 | 252,143 | 62.81% | 149,282 | 37.19%
Texas | 7 | 135 | 1,900,598 | 1,352,302 | 71.15% | 548,296 | 28.85%
Utah | 8 | 2 | 147,005 | 103,140 | 70.16% | 43,865 | 29.84%
Vermont | 3 | 7 | 32,882 | 26,896 | 81.80% | 5,986 | 18.20%
Virginia | 4 | 30 | 580,392 | 406,682 | 70.07% | 173,710 | 29.93%
Washington | 10 | 50 | 429,599 | 333,578 | 77.65% | 96,021 | 22.35%
West Virginia | 8 | 57 | 97,675 | 76,546 | 78.37% | 21,129 | 21.63%
Wisconsin | 1 | 3 | 443,785 | 273,015 | 61.52% | 170,770 | 38.48%
Wyoming | 9 | N/A | 69,608 | 42,524 | 61.09% | 27,084 | 38.91%
United States | 299 | 5,977 | 20,924,361 | 14,650,891 | 70.02% | 6,273,470 | 29.98%
Source: United States Census Bureau

## Cash and investment holdings[edit]

Investments are a crucial part of the pension process. The goal is that, by investing pension contributions, the pensioner will receive more money when he or she retires than he or she and the employer were able to contribute. These investments can come in the form of cash investments, short-term investments, securities, or other investments. Cash investments are usually low-risk, short-term investments that have a lower rate of return than other types of investments. Short-term investments are riskier than cash investments, but have the potential for greater returns. Securities can refer to stocks, bonds, or other types of financial certificates that hold some sort of financial value. As the values of these securities change, they can be traded to make a profit. While there are other applications of securities investments, this represents one of the most common practices.[2][3][4]

As of fiscal year 2016, state and local pension systems held $3.74 trillion in total cash and investment holdings. The table below summarizes pension system cash and investment holdings for each state. The columns labeled "Total cash and short-term investments," "Total securities," and "Total other investments" are subsets of the grand total. All dollar amounts displayed should be multiplied by 1,000 ($240,000 is equal to $240,000,000). Click "[show]" in the table below to display the data.[1]

Total cash and investment holdings, fiscal year 2016 (dollars in thousands)

State  | Grand total  | Total cash and short-term investments  | Total securities  | Total other investments
Alabama | $35,734,586 | $1,312,352 | $31,061,079 | $3,361,155
Alaska | $13,691,129 | $106,646 | $7,781,199 | $5,803,284
Arizona | $45,029,742 | $1,326,378 | $35,857,123 | $7,846,241
Arkansas | $25,574,432 | $863,842 | $13,285,998 | $11,424,592
California | $761,443,651 | $40,171,780 | $648,485,818 | $72,786,053
Colorado | $51,562,223 | $1,004,472 | $45,394,634 | $5,163,118
Connecticut | $38,896,388 | $1,904,441 | $32,438,889 | $4,553,058
Delaware | $9,648,772 | $327,202 | $7,306,730 | $2,014,841
Florida | $177,360,518 | $2,480,897 | $161,224,092 | $13,655,530
Georgia | $93,547,192 | $2,053,404 | $90,622,306 | $871,482
Hawaii | $14,160,626 | $524,141 | $12,669,354 | $967,131
Idaho | $14,368,152 | $408,606 | $13,482,889 | $476,657
Illinois | $155,817,713 | $6,220,160 | $128,350,389 | $21,247,164
Indiana | $31,467,696 | $1,926,267 | $20,192,963 | $9,348,466
Iowa | $31,403,369 | $816,604 | $26,606,248 | $3,980,517
Kansas | $18,928,321 | $383,177 | $16,126,215 | $2,418,929
Kentucky | $28,514,597 | $755,688 | $24,031,338 | $3,727,571
Louisiana | $44,656,295 | $2,251,637 | $35,850,308 | $6,554,349
Maine | $12,408,641 | $87,898 | $2,839,195 | $9,481,548
Maryland | $68,197,392 | $2,711,585 | $63,532,853 | $1,952,955
Massachusetts | $74,135,018 | $1,352,584 | $57,364,479 | $15,417,954
Michigan | $83,458,541 | $3,138,515 | $77,215,191 | $3,104,836
Minnesota | $59,363,817 | $1,377,676 | $54,465,133 | $3,521,009
Mississippi | $25,257,079 | $1,323,800 | $21,480,509 | $2,452,770
Missouri | $71,224,105 | $4,181,085 | $54,889,358 | $12,153,661
Montana | $10,025,265 | $297,118 | $9,213,855 | $514,292
Nebraska | $16,009,688 | $261,541 | $7,510,272 | $8,237,875
Nevada | $34,931,255 | $209,395 | $33,137,483 | $1,584,377
New Hampshire | $7,735,542 | $133,252 | $6,746,923 | $855,367
New Jersey | $73,173,395 | $5,852,372 | $49,642,670 | $17,678,353
New Mexico | $25,777,278 | $847,045 | $23,016,166 | $1,914,067
New York | $452,988,711 | $12,997,052 | $393,243,651 | $46,748,008
North Carolina | $87,703,405 | $1,325,063 | $64,836,696 | $21,541,646
North Dakota | $5,103,732 | $97,800 | $3,996,956 | $1,008,976
Ohio | $175,253,319 | $5,379,018 | $135,842,032 | $34,032,269
Oklahoma | $30,058,380 | $665,891 | $27,591,485 | $1,801,004
Oregon | $70,564,979 | $2,751,690 | $62,929,041 | $4,884,248
Pennsylvania | $99,906,853 | $9,663,340 | $77,760,502 | $12,483,010
Rhode Island | $8,821,192 | $212,147 | $7,024,954 | $1,584,091
South Carolina | $29,513,757 | $4,756,493 | $19,461,258 | $5,296,006
South Dakota | $10,999,708 | $3,260,689 | $5,751,891 | $1,987,128
Tennessee | $53,042,292 | $2,714,132 | $46,313,033 | $4,015,127
Texas | $239,499,001 | $7,657,055 | $175,428,196 | $56,413,750
Utah | $27,240,224 | $2,240,405 | $13,662,331 | $11,337,488
Vermont | $4,096,541 | $60,743 | $3,818,806 | $216,992
Virginia | $82,711,198 | $1,038,679 | $69,346,689 | $12,325,830
Washington | $79,748,995 | $258,421 | $63,906,967 | $15,583,607
West Virginia | $13,625,030 | $76,282 | $12,108,728 | $1,440,019
Wisconsin | $98,152,527 | $3,151,259 | $91,786,009 | $3,215,259
Wyoming | $7,403,669 | $518,874 | $5,144,995 | $1,739,800
United States | $3,739,194,940 | $145,617,533 | $3,100,191,413 | $493,385,994
Source: United States Census Bureau

## Plan types[edit]

There are three primary types of public pension plans: defined benefit plans, defined contribution plans, and hybrid plans.

### Defined benefit plans[edit]

Defined benefit plans provide a guaranteed lifetime retirement benefit based on an employee's years of service and salary. Benefit amounts, which are calculated differently from state to state, are determined by using a ﬁxed multiplier that is set out by the plan. Although most statewide plans require employee contributions, the retiree's benefit is not tied directly to his orher contribution amount. The majority of public pension plans are defined benefit plans.[5]

### Defined contribution plans[edit]

In contrast, in defined contribution plans, both employers and employees contribute to the employee account. Then, the employee determines how the contributions are invested, usually selecting from options presented by the plan administrator. At retirement, the amount of money in the fund is the basis of the employee's retirement benefit. The sponsoring public entity does not ensure a particular benefit amount, and usually does not provide post-retirement benefit cost of living increases.[5]

### Hybrid plans[edit]

Cash balance plans are a kind of hybrid plan and, like defined contribution plans, they provide each member with an individual account to which, in the public sector, both employees and employers make contributions. Funds in the members’ accounts are pooled for investment purposes, members’ balances are guaranteed, and members are guaranteed an annual rate of return.[6]

Under another kind of hybrid plan members eligible for both a defined benefit and a defined contribution plan. In Indiana, for example, both components are mandatory. Employer contributions finance the defined benefit annuity, and employee contributions accumulate in an individual retirement account (which comprises the defined contribution part of the plan). [6]

## Pension health[edit]

See also: Public pension health by state

Pension health is a term used to describe the overall state of a pension system. It can be difficult to gauge pension health in each state; studies use a variety of calculations to determine a pension system's average liabilities, unfunded liabilities, funded ratio, and other metrics. The information on this page comes from two reports by two separate organizations: the Pew Charitable Trusts and the Hoover Institution.

HIGHLIGHTS

* The Pew Charitable Trusts’ annual analysis of pension health for 2018 notes that “at $1.24 trillion, the 50-state pension funding gap—the difference between a state retirement system’s assets and its liabilities—improved slightly in 2018 primarily due to strong investment performance. However, after a decade of economic recovery, the aggregate pension funding gap remains historically high and could increase by up to $500 billion based on market returns through March 2020, including recent losses related to the COVID-19 pandemic. In addition, the disparity between well-funded and underfunded state retirement systems is greater than it has ever been.”

* The Hoover Institution’s "Hidden Debts, Hidden Deficits" 2019 update highlights that “the total unfunded pension debt nationwide to public employees rose between 2015 and 2017 from $3.846 trillion to $4.145 trillion. More important, in FY2017, state and local governments contributed $185 billion to pension payments, or 8.0 percent of every dollar they raised in revenue, up dramatically from 4.9 percent in FY2015. However, this amount still proved insufficient, as the true annual cost of keeping pension liabilities from rising would be approximately $338 billion. This ‘true cost’ figure amounts to over 14 percent of all the revenue generated by state and local governments, or a whopping 21 percent of their tax revenue."

## See also[edit]

Click on a state below to read more about public pensions in that state.

Choose your state...AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWashington, D.C.West VirginiaWisconsinWyoming

http://ballotpedia.org/Public_pensions_in_STATE

* Local pensions on the ballot
* Public pension health by state
* State public pension plans

## External links[edit]

* United States Census Bureau, "State and Locally-Administered Defined Benefit Pension Systems - All Data by State and Level of Government: 2016"

## Footnotes[edit]

1. ↑ 1.0 1.1 1.2 1.3 United States Census Bureau, "State and Locally-Administered Defined Benefit Pension Systems - All Data by State and Level of Government: 2016," accessed September 8, 2017
2. ↑ Investopedia, "Cash investment definition," accessed April 6, 2015
3. ↑ Investopedia, "Short-term investments definition," accessed April 6, 2015
4. ↑ Investopedia, "Securities," accessed April 6, 2015
5. ↑ 5.0 5.1 National Conference of State Legislatures, "State Retirement System Defined Contribution Plans," accessed September 2009
6. ↑ 6.0 6.1 National Conference of State Legislatures, "Checklist of State Defined Benefit, Defined Contribution and Hybrid Plans for State Employees and Teachers," accessed August 2012

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