There is no federal law that mandates funding for state and local government retirement plans, and yet these plans are funded about as well as private sector plans that operate under the Employee Retirement Income Security Act of 1974. Why is that?
All Research Studies
Census data provide some insights on the trends in state and local government pension plans, including revenues, benefit payments, assets, holdings, and membership.
Although most states and localities offer their employees defined benefit pension plans, in the last decade 12 states have introduced some form of defined contribution plan.
Defined pension plans, while disappearing in the private sector, are alive and well in the state and local government sector.
With heightened emphasis on the economic security of future retirees, it is critical to understand the differences between state and local pension plans and those offered by the private sector.
An assessment of the state of the public sector workforce. (7/07)