City and county retirement systems had a combined funding ratio of 98% in 2007, up from 93% in 2006, according to a Wilshire report.
Pension assets had a combined market value of $248.4 billion and liabilities were $257.9 billion for the 71 systems that reported on or after June 30, 2007. The funding ratio for those plans was 96%, up from 91% in 2006.
Of the 71 systems that reported actuarial data as of June 30, 2007, 56% had a market value of assets less than pension liabilities, or were underfunded.
The 104 plans included in Wilshires annual report averaged a 66.5% allocation to equities in 2007, including real estate and private equity; and a 33.5% allocation to fixed income. The equity allocation is higher than the 63.1% in 2002, while fixed income dropped from 36.9% in 2002. Domestic bonds had the greatest decline, with the 26.3% allocation in 2007, down from 34.9% in 2002.