PROVIDENCE – The state pension system decreased its unfunded liability by more than $100 million in fiscal year 2020, the R.I Office of the General Treasurer announced Dec. 9.
The $112.5 million decrease in fiscal 2020 marks the second consecutive year the state has lowered its unfunded pension liability, and the largest decrease since pension reforms took effect in 2011, according to a news release.
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Total aggregate funding of the state pension system increased 1% year over year from 61.5% to 62.5%. The number of fully funded municipal plans managed under the state system also increased from 27 to 30, with 76 of the 117 plans at least 80% funded.
Treasurer Seth Magaziner credited the strong pension performance in a year marked by tumultuous financial markets to the state’s Back to Basics investment plan, which includes crisis protection asset classes to shield against volatile markets.
Most retirees will benefit from a 1.06% cost-of-living adjustment in 2021 as a result of the strong performance, the release stated.
Nancy Lavin is a staff writer for the PBN. Contact her at Lavin@PBN.com.
