State and local pension funds had a $1.4 trillion funding deficit at the end of 2022, according to Equable Institute. Over the past year, assets fell by 4.5% to $4.9 trillion, while liabilities increased 3.7% to $6.4 trillion. The funding gap, which was just under $1 trillion at the end of 2021, jumped to $1.4 trillion, in line with previous years.
The funding ratio was 77.3%, down from 2021's 83.9%. From 2017 to 2021, it ranged from 71% to 73%.