Only one in five public pension plans can meet their financial obligations to plan participants, according to a new study.
Cogent Research LLC, Cambridge, Mass., published this finding in a summary of results from a new report that examines the attitudes and behaviors of investors, including asset manager preferences. The report is based on a survey of a nationally representative sample of 590 institutions holding a minimum of $20 million in assets.
The funding problem, the report notes, is most acute among the largest pensions, including union and public sector plans. Only 10% and 12% of these plans, respectively, estimate their current funding status to be 95% or higher.
A majority (54%) of public pensions report their current funding status to be below 80%, including 16% that are below 60%, says Cogent.