Louisiana ranks 19th worst on pension-plan funding

The funded ratio of the Louisiana public pension plan ranked 31st in the nation, according to a new analysis from the Tax Foundation based on fiscal-year 2017 data.

The state’s pension fund is 65 percent funded, the Tax Foundation study found. The percentage was calculated by comparing the market value of the pension fund’s assets to its accrued pension liabilities.

The analysis is based on data released by the Pew Charitable Trusts.

A low ratio points to the state’s pension system being not well-funded, and higher ratio means that pension fund assets are keeping up with liabilities, according to the Tax Foundation.

Historically, state pension funds were classified as defined-benefit plans, which guarantee retiring members an annuity for life. More recently, however, states have created defined-contribution plans for new hires, allowing workers to oversee individual accounts and helping states to reduce liabilities over time, the analysis said.

State Pension Plan Funding Percentages, From Highest to Lowest

Rank State Funded Ratio of State Public Pension Plans
1 Wisconsin 103%
2 South Dakota 100%
3 Tennessee 97%
4 New York 95%
5 Idaho 91%
6 North Carolina 91%
7 Utah 90%
8 Nebraska 90%
9 Washington 90%
10 Oregon 83%
11 Delaware 83%
12 Iowa 82%
13 Maine 82%
14 Ohio 80%
15 Florida 79%
16 Georgia 79%
17 West Virginia 79%
18 Oklahoma 78%
18 Missouri 78%
20 Virginia 77%
21 Arkansas 77%
22 Texas 76%
23 Wyoming 76%
24 Nevada 74%
25 Montana 73%
26 Alabama 71%
27 California 69%
28 Maryland 69%
29 Kansas 67%
30 Alaska 67%
31 Louisiana 65%
31 Michigan 65%
33 Indiana 65%
34 Vermont 64%
35 North Dakota 64%
36 Minnesota 63%
37 New Hampshire 63%
38 New Mexico 63%
39 Arizona 62%
40 Mississippi 62%
41 Massachusetts 60%
42 Pennsylvania 55%
43 Hawaii 55%
44 South Carolina 54%
45 Rhode Island 54%
46 Colorado 47%
47 Connecticut 46%
48 Illinois 38%
49 New Jersey 36%
50 Kentucky 34%

Source: Tax Foundation and the Pew Charitable Trusts

This article was first published by The Center Square.

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