Public Pensions Up 12.4% Return Most in 3 Years

  • Annualized 20-year median returns have been 7 percent
  • Systems 71.8 percent funded, down 1.7 percent from fiscal 2015
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The fuse on the public pension time bomb got a little longer.

Record-breaking equity markets boosted U.S. state and local-government pension investments the most in three years in fiscal 2017, easing pressure on governments that have to put more money into plans when investment returns fall short of expectations.