Welcome to the latest edition of This Week in Pensions! We have gathered the best stories about pensions and retirement security from the previous week. This is the news you need to know in the fight for a secure retirement.
Public Pensions Maintain Healthy Funding Levels in 2025
This week, Millman released data from its most recent Public Pension Funding Index (PPFI), confirming that public pension systems have increased funding to the highest levels since 2021. The PPFI analyzes data from the nation’s 100 largest public defined benefit plans and determined that market gains have brought the overall funded ratio to 82.9%.
Becky Sielman, co-author of the Milliman PPFI, said, “The current favorable market conditions should translate into improved results in upcoming financial reports. It is possible the recent strong investment returns will ease the pressure on plan sponsors to increase contributions.”
Pensions continued to increase revenue, despite setbacks in April driven by the Trump administration’s tariff regime. Tariff fears initially turned chaotic for public pensions, which lost $170 billion of their equity portfolios in the weeks following the administration’s plan announcement in April. However, they bounced back by the end of May and continued to grow through the end of the fiscal year on June 30. System managers credit their commitment to responsible budgetary governance and financial discipline for this rebound.
Ohio’s Budget Line Items Anger Retirees
Ohio’s biennial budget is intended to serve as a funding plan for the state, but this year, it has evolved into a “vehicle for significant policy changes,” leaving some Ohioans feeling swindled.
In the final moments of the 2025 state legislative session, lawmakers included several items in the state budget that saw little, if any, public debate. One item of concern would reduce transparency and accountability in the State Teachers Retirement System of Ohio (STRS) by replacing three member seats, historically filled by both active and retired teachers, with state-appointed officials.
This type of maneuver, though controversial, is a legal action the state legislature has been deploying more frequently than in years past. In the 2025 budget, Ohio lawmakers included provisions in the budget affecting schools, infrastructure funding, abortion laws, education governance, prison privatization, and SNAP purchase restrictions. The process of adding legislative actions into the budget often circumvents public scrutiny and creates a division between lawmakers and residents.
America’s Retirement Crisis is Here to Stay; Finding Solutions Must Come Next
No matter how you slice it, the looming retirement crisis in the U.S. is growing larger and scarier by the day. Economics professor and pension advocate Dr. Teresa Ghilarducci published a piece in Forbes this week, discussing some of the myths, problems, and solutions surrounding the stark lack of retirement savings and preparedness among many Americans.
Speaking with Yahoo Finance podcast host Bob Powell, Ghilarducci points out some of the larger myths decrying the urgency of the current retirement situation. One notable shortcoming is the increase in the retirement age, which is based on rising life expectancy rates. “The people who are living longer and healthier lives are typically those in the top income tiers. They’ve had stable jobs, good healthcare,” she writes. “But for the majority, especially those without college degrees or stable career paths, life expectancy hasn’t improved…Yet we still push the idea that people should just “work longer” as if everyone has a flexible, fulfilling job with great health benefits.”
The “do-it-yourself 401(k) system” is another key factor contributing to the decline in retirement security. Noting that it is a fundamental failure, Ghilarducci writes, “[This system] works just fine for financial services companies and for employers who don’t want to contribute to retirement. It just doesn’t work for workers. And that is who we should be designing retirement policy for.”
Some lawmakers are supportive of transitioning from defined-contribution accounts, the most widespread retirement vehicle, to a national pension plan. Vermont Senator Bernie Sanders recently announced his plan to introduce the Pensions for All Act, a piece of legislation designed to fill the gap in private-sector retirement savings.
Be sure to check back next Friday for the latest news in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.