U.S. State Pension Underfunding Worsens With New Moody’s Formula
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Underfunding of state pension plans in the U.S. grew worse under a new Moody’s Investors Service formula, the rating company said in its first report using the standards.
The report, released today, examined pensions in every state and found that the total funded ratio, which measures assets relative to liabilities, fell to 48 percent under its new methodology from 74 percent before the changes. The ratio measures fund management and whether a state is keeping up with promises to retirees.