I have a small retirement from a state agency. My state is a red “flyover state.” Our fund is 97% funded, which makes it sound under any actuarial definition.
Of course, it is not at all as generous as those retirements in the blue states where they pay and promise the moon, all to be figured out later.
For example, in our plan both employees and employer pay into the plan. Not like those plans that require no contributions from employees. Also, we have none of those crazy formulas that permit members of other plans to retire early with 100% of their salaries. I will soon have 30 years of service, and if I retire then my benefit will equal just over 60% of the average of my highest 36 consecutive months. And finally, our plan changed their assumed return on investment several years ago from the then-common 8% to a lower number (I don’t recall right now the new percentage - I think it’s either 5% or 6%).
I mention all that to point out that even with our pension plan taking the above measures that are at least more conservative than other plans out there, they have had to increase the contribution level every year for many years now to try to keep the pyramid somewhat stable. At least they’ve been smart enough to do that, rather than just ignoring the problem as many have.
Even so, between employee and employer contributions, 25% of our salaries is now being contributed, and what funded level has that generated? 67%. That really shows how difficult it is to prop up these pensions, even when it’s done pretty responsibly. Our fund may be OK in the long run, but I can’t see how those full-pay at age 55 pensions out there can survive much longer.