State retirement systems in America are still Fragile.
Despite state and local plans reporting disappointing preliminary investment returns averaging -10.4% in 2022 , there has been a net positive funded ratio trend on net over the past three years.
Funded status in 2022 for state and local retirement systems has declined considerably from last year, the sharpest single-year decline since the Great Recession and financial crisis. Investment return volatility is contributing to some significant swings in funded levels, which has been compounded by rising inflation and geopolitical turmoil.
Author(s): Anthony Randazzo, Jonathan Moody
Publication Date: 26 July 2022
Publication Site: Truth in Accounting