Earnings on investments accounted for 71 percent of public retirement system revenues, while employer and employee contributions provided 20 percent and 9 percent respectively, according to an annual study by the National Conference on Public Employee Retirement Systems.

Hank H. Kim, Esq., executive director and counsel of the National Conference on Public Employee Retirement Systems

The share of revenues that comes from investment earnings edged up from 69 percent a year earlier, while the employer contribution dipped from 22 percent. The employee contribution share was unchanged, according to the 2020 NCPERS Public Retirement Systems Study.

The annual study, based on responses from 138 state and local pension systems, illustrates in granular detail the fiscal and operational integrity of public pensions, according to Hank H. Kim, executive director and chief counsel of NCPERS.

“The data show that a long investing horizon uniquely positions pensions to provide safe, reliable retirement income for millions of public servants,” Kim said. “Employers and employees play critical roles by paying into pension funds, but patient, long-term investing is what truly differentiates public pensions from other retirement vehicles.”

Survey participants had 12.8 million active and retired members and assets exceeding $1.5 trillion in actuarial and market value. They were roughly evenly split between statewide pension systems—51 percent—and local pension systems—49 percent. NCPERS conducted the tenth annual survey from September through December 2020 in partnership with Cobalt Community Research. It covered the most recently concluded fiscal year, which for most pension systems was calendar year 2019.

Read more @Rome News Tribune