US Public Pension Funds to See Smaller Shortfall in 2023

Public pension funds in the US are expected to see a $1.39 trillion shortfall in 2023, a slight decline from $1.59 trillion in total unfunded liabilities last year, according to an October report released by the Equable Institute.

• The average investment return is about 5.6% this year as of Sept. 30, a gain the researchers Anthony Randazzo and Jonathan Moody called “underwhelming”
• The returns have resulted in a moderate improvement to the average funded ratio for state and local retirement systems
  • The national funded ratio average is projected to increase from 75% in 2022 to 78.8% in 2023
• Despite the ...