Success Strategies for Well-Funded Pension Plans
In an effort to identify practices shared by successful public pension plans, SLGE examined four defined benefit pension plans that have long traditions of being well funded (their funded ratios range from 87.6 to 99.8 percent). While each plan studied has a unique history and legal framework, all four shared the following traits:
- A commitment to fund the annual required contribution in both good and bad financial times;
- Conservative, realistic assumptions that are adjusted based on experience; and
- Changes to benefit levels and contribution rates as needed.