Source: Benefits Canada
The average funding ratio for U.S. public pension plans increased to 77.8 per cent in 2022 with the majority (68 per cent) of pensions’ revenue coming from investment returns, according to a new survey by the National Conference on Public Employee Retirement Systems.
The 12th annual public retirement systems study received responses from 195 state and local government pension funds, which represent more than 19.6 million active and retired members with combined assets exceeding $3 trillion.
Across these pension funds, the average one-year return was 11.4 per cent. And among the various asset classes in which they invest, real estate and private equity saw the largest returns last year.