Yesterday, the Civic Federation released the results of their study of ten large public pension plans in the Chicago area. These plans provide retirement benefits for government workers, like teachers, firefighters, police, and other municipal workers. Among the findings:
- The total unfunded pension liability rose $26 billion in the 10 years ended fiscal 2012, reaching $37 billion.
- The actuarial funded ratio fell from 2011 to 2012, despite a favorable investment climate.
- The ratio of active employees to beneficiaries continued to decline. From 2003 to 2012, this ratio fell from 1.55 to 1.11.
- Employer contributions exceeded statutory requirements for all 10 plans in 2012, but none of the plans received the actuarial required contribution (ARC).
This report came out yesterday, but it is worth noting that it only covers 2012, because that is the latest year for which audited required reports are available. That is a sad statement, in the information age. Employees, taxpayers and citizens deserve more timely reporting, particularly given the risks that long lags in reporting can mask recognition of higher risk-taking investment behavior, and/or deterioration in funding status.
The full Civic Federation report is available here.