Public Pension Contributions Reach Record Yet Problems Persist
- Outflows still outpace government contributions and returns
- Public pensions are increasingly betting on risky alternatives
This article is for subscribers only.
State and local government contributions to public pensions hit their highest level last year and investment returns are running above average in 2024, according to a new report by Equable Institute, which said risks are growing as the funds ramp up bets on risky private capital strategies.
The annual report published Tuesday by the nonprofit projects the national public pension funding shortfall to drop this year to $1.3 trillion from $1.6 trillion in 2023. The average funded ratio of public pensions will increase to nearly 81% from about 76% last year, the group said.