Public Pension Classic: 80 Percent Funding Hall of AWESOME!
Replaying that decago-ago favorite tune ... Experts say: 80% fundedness is AWESOME!
I will have the March 2025 pension round-up later, but for today, I thought I’d replay the STUMP post from this date in 2015, as it was so enjoyable!
I will follow up on this later, as well.
A lot has happened in 10 years.
ORIGINALLY POSTED 1 APRIL 2015
[some links may no longer work]
[all bolding added]
Illinois’ five pension systems have a combined average funded ratio of 40 percent, which is half of the 80 percent funding level considered “safe” or “healthy.”
EVERYTHING IS COOL AT 80 PERCENT
In 2013, 17 plans were underfunded at least 40 percent, 45 were funded between 60 to 80 percent and 22 were funded at over 80 percent —the benchmark where a plan is considered solvent, according to the AP.
According to GRS, plans funded at 80 percent or more are considered healthy and financially stable.
PENSIONS WILL BE PAID TO THE CENT
A study from Pew Trusts ranked Pennsylvania as the third worst in pension contributions since the early 2000s. It was 75 percent funded in 2010 with a $29 billion gap heading its way, whereas experts indicate an 80 percent funded pension is financially sustainable.
EVERYTHING IS BETTER WHEN YOU PARTIALLY FUND
Municipalities are recommended to fund 80 percent of their liabilities at any one time. “Ideally you want to be at 100 percent (funded), but that’s unrealistic,” DePasquale said.
IF THE PENSIONS GET WHACKED WE WOULD BE SO STUNNED
Pension debt is the norm. Of the 50 states, 37 states have funded pensions below what the Government Accountability Office and other experts call the “healthy” level of 80%.’
THEY’RE THE SAME, NEW JERSEY, CHICAGO, KENTUCKY, THE PENSIONS WILL ALWAYS BE……
….but because cities and states can count on being able to tax to cover their obligations, rating agencies and regulators believe their assets need to cover only about 80 percent of their total liabilities.
EVERYTHING IS AWESOME!!!!!!!!!
WHEN YOU’RE LIVING THE DREEEEEEEEEAM
Musical reference for those who need a little reminder:
Does anyone in corporate America do a pension? I wonder how many of them are 80% funded? The Federal solution is https://www.pbgc.gov/ and I wonder how fair that is to the taxpayer?
What's the current situation in Illinois? I'm asking because Governor Pritzker is making noises about running for President. Also asking because Pritzker is worth $3billion+, and perhaps he could fix a shortfall by writing a check...