Fiscal institutions and the funding of US state and local pension plans

Abstract

This paper investigates the relationship between the funded ratio of US public pension plans and several fiscal institutions adopted by state governments. The author analysed a large data set from 1997 to 2012, and found that states with stricter balanced budget requirements and debt limits had a lower pension funded ratio, whereas states with tax and spending limits in place had a higher funded ratio. The findings contribute to the current debate on public sector pension reforms in the US and internationally.

Keywords:

• Fiscal institutions
• funded ratio
• pension reform
• public sector pension plans
• state and local

Additional information

Notes on contributors

Qiushi Wang

Qiushi Wang is an Associate Professor in Public Administration at the Center for Chinese Public Administration Research, School of Government, Sun Yat-sen University, China.