A new report finds that state and local government retirement systems on the whole successfully navigated the 2007 to 2009 Global Financial Crisis. Moreover, public retirement systems across the nation have adapted in the years since the recession by taking actions to ensure continued long-term resiliency.

These findings are detailed in a new study released today by the National Institute on Retirement Security (NIRS), Examining the Experiences of Public Pension Plans Since the Great Recession. The report is authored by Tyler Bond, NIRS Research Manager, Dan Doonan, NIRS Executive Director, Todd Tauzer, Segal Vice President and Actuary, and Ronald Temple, Lazard Managing Director and Co-Head of Multi-Asset and Head of U.S. Equity.

Register here for a webinar on Thursday, October 13, 2022, at 2:00 PM ET for a review of the findings with the report authors.

"No investor was immune from the devastating effects of the Great Recession, including public pension plans," Doonan said. "But despite the global turmoil, pension plans didn't miss a beat delivering promised retirement income to retirees. In fact, more than $3.8 trillion in benefits have been paid since 2007. What's more, this retrospective analysis shows that most public sector retirement systems recovered their pre-recession asset levels within six years while simultaneously paying benefits."

"Furthermore, we've seen a consistent trend among public plans to adapt to a changing environment with their assumptions and investments," Doonan said. "And, plan funding policies also have adapted significantly to pay down outstanding liabilities more quickly, as well as improved contribution discipline during the recovery. These changes, combined with the substantial growth in public plan assets during the past decade, attest to the strength and longevity of public pension plans."