Over 27 million employees and beneficiaries are covered by state and local government pension plans. However, the recent economic downturn and associated budget challenges confronting state and local governments pose some questions as to the sustainability of these plans, and what changes, if any, state and local governments are making to strengthen the financial condition of their pension plans. The Government Accountability Office (GAO) was asked to examine recent trends in the financial condition of state and local government pension plans; and strategies state and local governments are using to manage pension costs and the impacts of these strategies on plans, sponsors, employees, and retirees. This book analyzes sector-wide financial conditions based on national-level data on pension funding from the U.S. Census Bureau and others, and reviewes information on recent state legislative changes affecting government pensions from annual reports prepared by the National Conference of State Legislatures (NCSL).
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