A market recovery produced fiscal 2020 US public pension funding results that were below target, but far less severe compared to a March market bottom. Governments will avoid a significant pension cost spike as a result, but lower for longer interest rates continue to push liabilities up and the negative non-investment cash flow (NICF) of most pension systems means contribution levels remain key to keeping pension-related credit risk at bay.
Topics include:
- Public pension funding results (June 30, 2020) and credit ramifications, including impact to liabilities, annual contributions, pension system cash flow and volatility risk
- Pre-funding of retiree health care liabilities (OPEBs) at risk due to government revenue declines
- How low contribution levels and large liabilities can lower government credit quality
- Most recent state government pension liability snapshot and funding level outlook
Speakers:
- Tim Blake, Managing Director (Moderator)
- Tom Aaron, VP-Sr Credit Officer
- Pisei Chea, AVP-Analyst
