Encore: Paying off unfunded pension liabilities will be a low priority after COVID-19
Our most recent update of state and local pension plans showed that even after nearly a decade of stock market gains plans were only about 70% funded in fiscal year 2020. That funded ratio discounts future benefits by the plans assumed rate of return (7.2%); the ratio would be lower with a lower discount rate (see figure 1). At the same time, experts from the Center on Budget and Policy Priorities (CBPP) predict that state budget shortfalls from the economic impact of COVID-19 will total a cumul…
