In 2022, 14% of US public pension plans had funded ratios of 60% or less and only 12% had funded ratios of 100% or more, says Ortec Finance. As well, the majority expect the risk profile of their plans to increase.
In 2022, 14% of US public pension plans had funded ratios of 60% or less and only 12% had funded ratios of 100% or more, says Ortec Finance. As well, the majority expect the risk profile of their plans to increase. Its analysis reveals that the average funded ratio for US public pension plans was 77.89% in 2022 and collectively they had total accrued liabilities of $6.369 trillion and total unfunded liabilities of $1.445 trillion. The biggest driver of pension fund risk identified by the study is interest rate movements, followed by cash flow requirements and liquidity.
