Under Act 44 of 2009, which addressed municipal pension plans in the state, each municipality on a biannual basis is given a distress score based on the aggregate health of its plans measured by funded ratio (assets/liabilities). Scores ranges from 0-3 and the numerical value coincides with having no distress (100% or >, minimal distress 99-70%, moderate distress 69-50%, and severe distress 49% or <).
This year’s scores from PERC for local governments in Allegheny County (107 municipalities and 32 authorities/associations received scores) show that no local government is in severe pension distress under Act 44. Three municipalities–Pittsburgh, Braddock Hills, and Oakdale–had funded ratios in the 50s. Pittsburgh and Braddock Hills were in severe distress in 2010 but have since moved out of that classification.
93 local governments were classified as “not distressed” with 8 (seven municipalities, one authority) having a funded ratio of 150% or greater.
