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NASRA Analyzes the Impact of Economic and Market Declines on Public Pension Plans

In June 2020, the National Association of State Retirement Administrators (NASRA) released its report, Recession and Market Decline Impacts on Public Pension Plans.  NASRA analyzed two periods of market decline and economic recession that occurred since 2000 that may help to provide insight on the potential impact of recent events on public pension plans and their sponsoring governments. 

According to the report, the effects of market decline and recession will vary for pension plans and their sponsors.  The impact will be greatly impacted by future investment performance as well as the effect of the recession on state and local government revenue collections. 

The report concludes, “Because every public pension is unique, the effect of the recent period of market volatility and the recession currently underway also will be unique for each pension plan.  As a result, each plan and plan sponsor will need to determine what response to these events, if any, is most appropriate.”

The report is available here.