State pension plans' aggregate funded status declined 50 basis points in fiscal year 2014 to 72.6%, said the 13th annual public pension funding review by Loop Capital Markets.
Thirty-three states saw an increase in funded status in fiscal 2014 from the previous year, while 16 states saw their funded status decline and two were relatively unchanged. Idaho had the largest annual increase in its funding ratio, followed by Nebraska, Oklahoma and Oregon.
The number of states and District of Columbia reporting an increase in funded status has increased from 19 in fiscal 2013 and five in fiscal 2012. For many states, 2014 marked the first year since the recession when 2009 losses were not incorporated into their five-year smoothing periods. Washington, whose funding ratio declined the most at 6.7 percentage points, has an eight-year asset smoothing period. California, which reported a decline of 5.2 percentage points, calculates its assets on a market-value basis.