Pension Assets of States, Local Governments Jump
Stocks, bonds and other investments held by pension systems run by U.S. states and local governments jumped 10.6 percent in value to $2.7 trillion in 2010 after two back-to-back years of asset drops, the U.S. Census said on Monday.
The gains were mostly due to rises in financial markets after the global credit crunch and may temper anxieties about under funded pension systems for school teachers, police and other government workers.
The Census said earnings on investments held by the 3,418 plans included in the report totaled $346.1 billion, compared with losses of $621.1 billion in 2009 and $71.4 billion in 2008. That marked the first year of earnings since 2007, when earnings added up to $472.8 billion.
“Pension systems have substantial investments in financial markets and, consequently, earnings are dependent on changes in market performance,” the Census report said.