[...]... discussed in detail in Chapter 7 1.5  State and Local Pension Systems In this section, we take a closer look at some other important characteristics of state and local pension plans 1.5.1  Public Pension Systems, Plans, and Funds When discussing public pension plan management, terminology can be quite confusing Many times, pension systems, pension plans, and pension funds are used interchangeably In its... benefit pension plans that are sponsored by state and local governments While they provide both defined benefit and defined contribution plans, 90 percent of state and local government employees receive pension benefits of the defined benefit type and, therefore, this book is mostly focused on the management of these plans There are at least four important reasons for examining the state and local government... roughly $3 trillion was held in state and local public pension plans, or close to 20 percent of total retirement assets in the United States In 2005, about 18 million active workers and retirees were covered under these state and local pension plans. With about 60 percent of the assets held in corporate stocks (see Figure 1.3 later in this chapter), state and local pension plans collectively hold... billion and accounted for only 0.8 percent of the GDP of $7.07 trillion in that year Thus, as a percentage of GDP, state and local public pension payment increased by about 50 percent in eleven years With the aging of the population, state and local pension payments are expected to continue to grow and to play an increasingly important role in the U.S economy Reason No 3: State and local public pension. .. pension benefits This linkage has become even more important now that state and local governments have to take into consideration the long-term financial cost of promised health benefits for retirees in addition to pension benefits  U.S Census Bureau State and Local Government Employee Retirement Systems Fiscal Year 2005  Ibid AU0548.indb 5 7/21/08 10:00:33 AM   n  State and Local Pension Fund Management. .. currently an Associate Professor at the School of Public Administration and Policy, Eller College of Management, University of Arizona His main teaching and research interest is public financial management in the state and local sector He has published many journal articles and book chapters on state and local government debt and pension plan management xxi AU0548.indb 21 7/21/08 10:00:32 AM AU0548.indb 22... public pension benefits Taxpayers, practitioners, researchers, and students in public administration all want to have a good grasp of the issues surrounding public pension management With $3 trillion and growing in assets under management in 2006, state and local pension systems loom increasingly large over the public finance horizon Despite the strong interest in and the need for understanding public pension. .. 6.2 Overfunded Pension Plan 147 6.3 Case Studies 149 6.3.1 Illinois State Pension Systems .150 6.3.1.1 Underfunding of Pension Contribution .150 6.3.1.2 Pension Benefit Increase 152 6.3.2 New Jersey Pension System 153 6.3.2.1 Reduction in Pension Contribution 154 6.3.2.2 Pension Benefit Increase .156 6.3.2.3 Consequence 157 6.3.3 New York State and Local. .. this country and, thus, exert influence on how they are governed The size of overall public pension plans is further illustrated by the ranking of both public and private pension plans in terms of pension assets under management Many state and local public pension systems are among the largest pension systems in the United States as well as in the world According to the annual survey by the Pension &... 1: State and local government defined benefit pension plans account for a significant portion of the assets accumulated in the United States to fund retirement Table 1.1 shows total assets in various retirement programs in 2006 outside the Social Security program, corresponding roughly to the retirement programs described above AU0548.indb 3 7/21/08 10:00:33 AM   n  State and Local Pension Fund Management . the State and Local Pension Plan Management 3 1.3 A Brief History of State and Local Public Pension Plans 6 1.3.1 Pre-1940 History 6 1.3.2 Post-1940 History 7 1.4 Public and Private Sector Pension. Raton London New York State and Local Pension Fund Management 129. The Art and Practice of Court Administration, Alexander B. Aikman 130. Handbook of Globalization, Governance, and Public Administration, edited. Meek, and Ulf Zimmermann 146. International Handbook of Public Procurement, edited by Khi V. Thai 147. State and Local Pension Fund Management, Jun Peng Available Electronically Principles and