NASRA

NASRA supports state-based governance of public pensions with stakeholder input, policy-driven decisions, and core design features: mandatory participation, shared financing, pooled risk, and lifetime income focused on targeted retirement security. buff.ly/Wqja6jP

Public pension funding rests on a basic principle: contributions & investment earnings must, over time, equal benefits & admin costs. Since public pensions build assets over 30 to 60 years, these funding assumptions are inherently long term. buff.ly/eBQnPzl #muniland

Most public pension funds maintain clear investment policies to guide how assets are invested. Written investment policies strengthen decision-making & reflect fiduciary care for public funds. Such policies support sound governance. buff.ly/vTvLAII #muniland

Updated March '26 report from @NatlGovs, @NCSLorg, @GovFinanceOffrs, NASRA, & peer organizations with a current look at fiscal conditions of states & localities, muni bonds & public pensions. Very worth a read for those following public finance. buff.ly/5XXFFNJ #muniland

Investment earnings and employee contributions fund the majority of public pension benefits, accounting for more than 70% of public pension financing over time. buff.ly/jLHsd7l #muniland

NASRA’s Fast Facts on State & Local Pension Systems has been updated as of 2/26. It’s a quick, easy-to-scan resource with key data & context on public pension systems. Take a look for a quick snapshot of the latest facts and figures. buff.ly/jLHsd7l #muniland

Employer & employee contributions prime the pump for public pensions & fuel long term inv. income. In '24, employers made 76% of contributions. Investment earnings+employee contributions cover ~70% of benefit costs, full employer contributions matter. buff.ly/qsl7cEk

Investment earnings generate 60% to 65% of public pension fund revenue;; driven largely by bonds & stocks. While market returns vary year to year, diversified portfolios help funds capture growth over time & support retirement benefits. buff.ly/TaFdcGf #muniland

State & local government employment diverged in the latest BLS data: Jan 2026 net -8,000 jobs. Over the past 12 months, state governments -71,000 while local governments +109,000. buff.ly/CTeqgFd #muniland

About 3 in 4 state & local public pension plans provide an automatic COLA (no action needed). Others use ad hoc COLAs (granted by legislatures/councils) or investment-based COLAs (triggered when returns exceed a benchmark). buff.ly/CPn0tdC #muniland

S&P Global Ratings: public pension funded ratios averaged 80%+ in FY25, up each year since FY22 (+~10 pts). With FY25 returns estimated approx. 11–12% & ~8.5% gains in the first half of FY2026, S&P expects the upward trend to continue into FY26. buff.ly/LhyGCOb #muniland

Federal Reserve data show state & local defined benefit plan assets totaled $6.68 trillion as of Sept. 30, 2025 (Q3), up 3.7% from $6.44 trillion the prior quarter and up $450 billion (+7.2%) year-over-year. buff.ly/M6Wrn3U #muniland

Over the past 30 years, a strong consensus has taken hold: public pensions should be funded on an actuarial basis & it’s showing up in results; many plans continue to receive 100% of their actuarially determined contribution. buff.ly/P3Oo9zJ #muniland

State & local pensions steadily lowered investment return assumptions since the financial crisis (avg target: 6.91% in FY 2023), and actual returns exceeded targets over the 1-, 5-, 10-, and 30-year periods ending December 2024. buff.ly/wQprD2T #muniland

Public pensions are a key factor in state and local creditworthiness; an issue that drew attention after the 2008/09 recession and market decline. Explore NASRA’s resources on how credit rating agencies weigh pension obligations in their methodology. buff.ly/ZDXqbVB

Most states enacted pension mods in recent years. DB plans remain most common, but more risk has shifted to employees. This paper reviews design/financing options, risk-sharing features, and case studies (info only). buff.ly/kfa31Tn #muniland

All 131 plans in NASRA’s dataset lowered their investment return assumption since the GFC, cutting the average from 7.94% (FY09) to 7.10% (FY21). Median is 7.0% and steady since FY21. Disciplined long term assumptions support sustainability. buff.ly/3YQERMY #muniland

Selected tools from the public pension community: plan-level data per Public Plans Data; time-series visuals from Cheiron’s Public Plan Tool; current return assumptions; Wisconsin’s biannual comparative study & NASRA's Public Fund Survey Summary. buff.ly/CxktJhN #muniland

NASRA’s Public Fund Survey (23rd year) tracks key trends for the nation’s largest public retirement systems. Covering ~90% of state & local DB plans, FY24 data show $5.13T in assets supporting 13.6M workers and 11.1M retirees and beneficiaries. buff.ly/L05iJ51 #muniland