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Friday, November 30, 2012

Money / Olympia Washington State Pension Plans Second Strongest Funded in the Nation

Posted by Goldy on Fri, Nov 30, 2012 at 9:39 AM

For all the fretting about the supposed risks of Democratic hegemony in Olympia, and for all the tears over how government employees' gold-plated pensions are sucking state coffers dry, a new analysis from Morningstar finds that Washington has the second strongest funded state pensions in nation.

Washington has an overall funding ratio of 98.1 percent and a per capita unfunded liability of just $160, making us one of only seven states with funding ratios above 90 percent, and one of only eight with unfunded liabilities below $1,000 per capita. By comparison, Oregon comes in at 86.9%/$2,059 and California at 77.1%/$3,249. Seven of Washington's ten state-run pension plans are actually overfunded!

Governments often cushion their budgets during tough economic times by deferring contributions to pensions. Washington didn't play those kinds of budget tricks. And as a result, there are no hidden liabilities on our balance sheets.

But you know, "tax and spend Democrats!" and "government incompetence!" and all that, so we better elect a Republican governor before the Democrats destroy our state!

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Comments (5) RSS

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Sweet, I just hit the 2 year mark as a state employee, but it takes 5 years to be vested. So maybe I'm not making contributions in vain right now.

Posted by internet_jen on November 30, 2012 at 9:56 AM

Well, it's good news they're currently well-funded, especially with their 7.9% investment return assumptions per the most recent CAFR (http://www.drs.wa.gov/administration/ann…). Anyone outside pension boards think that's a realistic return (especially given the investment performance they show in aforementioned CAFR)?

Posted by thename on November 30, 2012 at 10:57 AM

bad linky

Posted by InterestedBystander on November 30, 2012 at 11:02 AM