RFP Funding Factor

A Bloomberg story pegging Wisconsin as having the best funded public pension retirement system in the nation starts off:

The latest Pew Charitable Trusts report on the state pension funding gap, which came out last month, has many words of warning for states that are “on an unsustainable course, coming up short on their investment targets and having failed to set aside enough money to fund the pension promises made to public employees.” New Jersey is in the worst shape of all, with pension fund assets that in 2016 added up to only 31 percent of liabilities.

New Jersey may still be last (depending on how Kentucky plays it) but not for lack of assumption manipulation. Which got me to thinking.

Even with New Jersey putting in only 40% of their ‘required contributions’ it was announced recently that the GASB funded ratio for the system went up to 36%:

Is it a coincidence that we just got a new governor with higher aspirations?

In Wisconsin Scott Walker became governor in 2011 and in 2012 we got a glowing study about the condition of the Wisconsin Retirement System followed in 2015 by the announcement.

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