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A Deep Dive Into Shortfalls and Surpluses

Rachel BarkleyMunicipal Credit Analyst11 312 November 20121 Sielman, Rebecca. 2012 Public Pension Funding Study. TakeawaysPension funded levels and UAAL vary widely between the 40% of all states fall below morningstar s fiscally sound threshold of a 70% funded per capita is a major indicator as it represents how much each resident would need to pay to fund the liability and can vary compared to funded out for underfunded plans despite a satisfactory aggregate funded GASB requirements will change pension standards and accounting challenges and vulnerabilities facing government pension plans have gained new public prominence and attention of late. Both governing entities and the taxpaying public are beginning to grasp and acknowledge the potential, chronic consequences of looming pension liabilities.

Rachel Barkley Municipal Credit Analyst 11 312 696-6256 rachel.barkley@morningstar.com 26 November 2012 1 Sielman, Rebecca. 2012 Public Pension Funding Study. Milliman.

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