State and local public pensions in the U.S. in 2020 faced a total unfunded actuarial liability (UAL) of about $1.4 trillion, and the average pension plan was only 73% funded. Although preliminary data suggest that the current average funded status is closer to 85%, thanks to the substantial investment returns in 2021, the 2022 Public Pension Forecaster finds aggregate unfunded liabilities will jump back over $1 trillion if 2022 investment results end up at or below 0%.
However, despite funding developments from year to year, public pension plans remain subject to an uncertain economic climate, and the next downturn can
