E-News: Local Government Pension Outlook; K-12 Employees on COVID-19 Impacts

Local Pension Funding Projections Decline but Stable Through 2025

A new analysis of local government pension plans indicates that despite the ongoing COVID-19 pandemic and economic downturn, local government pension plans will see virtually no change in their average funded ratio during fiscal year 2020. Moreover, projections indicate that local pensions are quite sustainable on a cash-flow basis, and most can pay benefits indefinitely at their current contribution levels.

However, strains on government finances due to the COVID-19 recession could make it harder for localities to pay their required pension contributions. Projections through 2025 suggest that the finances for all public plans will deteriorate further, with local plans slightly worse off than state plans, but with sufficient funds accrued to cover at least ten more years of benefits beyond that.

Webinar Recording: K-12 Public School Employee Views on COVID-19, Jobs & Benefits

SLGE, in collaboration with experts from ICMA-RC, hosted a webinar to discuss results from the recent survey of K-12 employee views on their jobs and benefits – overall and in light of the ongoing pandemic’s impacts on their job satisfaction, financial condition, and personal/family well-being. Click here to view the webinar recording, infographic, or the full research report.

ICMA Annual Conference

SLGE will be involved in a number of sessions on government workforce, retirement, and health and wellness as part of ICMA’s first virtual conference, September 23-26. For details and registration, visit unite.icma.org.

SLGE in the News

The new local government pension research was discussed by Chief Investment Officer, Pensions & Investments and Route Fifty. Additionally, pension funding data from the Public Plans Database was cited by the Federal Reserve Bank of Kansas City.

The Center’s K-12/COVID-19 survey findings were covered by MarketWatch, Plan Adviser, Kansas City Public Radio/KCUR, and EducationDive.

Research Director Rivka Liss-Levinson, PhD, was interviewed by Government Technology for an article on the hiring of remote IT staff.