However, only half of the state and local retirement systems exceeded their assumed rate of return for the year.
The Equable Institute’s State of Pensions 2023 report claims that ‘pension funds are addicted to risk.’
Research finds education retirement costs are significantly outpacing education spending.
Preliminary 2022 investment losses are estimated at 10.4% on average for state and local plans.
Exceeding 6% returns over the next decade will likely require excess risk or consistently performing well above average.
Report says the worst of the COVID-19 recession has ‘yet to be fully felt by state governments and public retirement systems.’