I was looking at some numbers from my pension plan and was wondering if they can be used to make any determinations of strength.
These numbers are the latest available.
The plan has $3,353,000,000 in assets
The plan paid $142,000,000 in benefits for the year
Contributions (employee & employer) were $122,000,000 for the year.
That leaves $20,000,000 needed to be made up by investment returns to break even for the year. That equates to a 0.6% return required. Seems very strong to me.
For comparison, I looked at the Illinois State Pension which we all know is underfunded. It needed a 3.5% return to break even.
If these numbers are of any use, my plan is 6 times more financially viable than the Illinois State pension fund. Although Im not sure if the numbers are of any use because it seems like a fund that requires only a 3.5% return yearly to break even would be in good shape since it should be able sustain a long term return of 5% easily. Maybe the benefits paid out have been increasing too quickly year over year?
These numbers are the latest available.
The plan has $3,353,000,000 in assets
The plan paid $142,000,000 in benefits for the year
Contributions (employee & employer) were $122,000,000 for the year.
That leaves $20,000,000 needed to be made up by investment returns to break even for the year. That equates to a 0.6% return required. Seems very strong to me.
For comparison, I looked at the Illinois State Pension which we all know is underfunded. It needed a 3.5% return to break even.
If these numbers are of any use, my plan is 6 times more financially viable than the Illinois State pension fund. Although Im not sure if the numbers are of any use because it seems like a fund that requires only a 3.5% return yearly to break even would be in good shape since it should be able sustain a long term return of 5% easily. Maybe the benefits paid out have been increasing too quickly year over year?