...Funded Ratios Stop Declining: The median reported funded ratio for major statewide defined benefit pension plans that have reported 2013 valuations rose slightly in 2013, to 71.6%, from 69.1% in 2012. This contrasts with major plans' experience from the 2008¡2009 recession until 2012, during which median reported funded ratios fell nearly 14% in aggregate. Although many plans were still absorbing recessionary losses in 2013 given their practice of smoothing asset gains and losses over many years, recent asset gains and in some cases benefit and contribution reforms that materially reduce actuarial liabilities are contributing to plan stabilization. Pension Burdens Vary: The median unfunded pension liability attributable to states equals 3.3% of 2013 personal income, moderately higher than the corresponding median for states' net tax-supported debt, which is 2.6% of personal income. Fitch's pension calculation includes all defined benefit plan liabilities attributable to the states and adjusted...
