State pension plans' funded status improves

The median state pension plan funded status improved last year to 82.6% from 68.5%, according to data provided by Fitch Ratings. The rating agency's adjusted funded measure, which caps the assumed investment return at 6%, was 73.5% vs. 60.2% in 2021.

States dropped their assumed rate of return in 2022, continuing a trend going back at least several years. Last year, the average fell to 6.88% compared with 7.6% in 2015.

The number of states making at least 100% contributions compared with the actuarially determined amount continued its upward trend. There were 36 states making full contributions last year vs. 25 in 2016.