Pension studies evaluate the overall financial condition of public pension and retiree health plans and assess key plan attributes in order to identify: opportunities for improved financial stability; mechanisms for reducing costs for both plan sponsors (e.g., cities and counties) and members; and, strategies for modifying plan design to lessen the impact of dramatic fluctuations in resource demand.

Pension studies incorporate:

  • Assessments of current and historic assets, liabilities, funded ratios and other key indicators of financial status
  • Analysis of plan sponsor funding policies and practices
  • Evaluation of plan features and options, including comparisons with best practices of other public pension plans
  • Review of plan actuarial assumptions, which are key to estimating the value of plan assets and future liabilities
  • Analysis of compensation and retirement benefit components of memoranda of understanding with employee organizations

The benefits of pension studies include:

  • Identifying strategies for achieving long-term financial stability
  • Identifying options for reducing costs to plan sponsors and members
  • Identifying options for more equitable cost sharing between the plan sponsor and employees
  • Conducting comparative benchmarking of plan attributes and performance