Measuring Public Pension Health

Link: https://www.ncpers.org/files/ncpers-pension-metrics-2022.pdf

Webinar slides: https://www.nirsonline.org/wp-content/uploads/2022/03/FINAL-Pension-Health-Webinar-September-2022.pdf

Webinar video:

Graphic:

Excerpt:

This report describes a “scorecard”, a standardized summary of pension valuation results (shown on next page), as well as three new metrics, of varying degrees of novelty, to appear on it:


 The Scaled Liability is a measurement of pension liabilities against the size of the economy that supports these liabilities.
 The UAL Stabilization Payment (USP) is an objectively defined cash flow policy standard comparable to
the funding ratio, an objectively defined balance sheet policy standard.
 Risk-Weighting Assets is a proposed method to assess the value of a plan’s assets, taking into account
its capacity to endure the downside risk it has taken on through its allocation of investments.


Author(s): Tom Sgouros

Publication Date: September 2022

Publication Site: NCPERS