ABSTRACT
State and local public pension plans have come a long way over the past century. From only limited coverage to now universal coverage among full-time government employees, state and local pension benefits are an important part of compensation for government employees and play a critical role in ensuring financial security in their retirement. The management of public pension plans has also become increasingly sophisticated over the past half century. This level of sophistication can be shown in three areas:
1. Pension funding policy has shifted from pay-as-you-go to full actuarial funding for the vast majority of state and local pension plans.
