Investment Update: How Do Public Plans Value Their Assets?


Publication Date: September 2019

Publisher: Center for Retirement Research at Boston College

Author(s): Jean-Pierre Aubry; Kevin Wandrei

Research Area:

Keywords: Financing Retirement

Type: Report

Coverage: United States

Abstract:

Public pension funding is the product of two key factors: required contributions and investment returns. Since higher returns reduce the burden of contributions (on plan sponsors, participants and, ultimately, taxpayers), achieving adequate returns is critical to funding future benefits. This brief provides an update on the investment performance of U.S. public pension plans since 2001 and introduces new Governmental Accounting Standards Board reporting on the fair value methods of pension plan assets.