Macro-financial risk
2026-04-26
10 minute read
17 sources
US State Pensions 2026: USD 5.5 Trillion of Trust Money, an 80 Percent Funded Aggregate, and the CalPERS, CalSTRS, Texas TRS Allocation Reset
Federal Reserve Z.1 puts US state and local defined benefit assets at roughly USD 5.5 trillion at end 2024, with Pew Charitable Trusts marking the aggregate funded ratio in the 80 to 85 percent band on a market value basis. The 2024 fiscal year delivered a median public plan return near 9.7 percent, but discount rate compression, a 25 percent and rising allocation to alternatives, and an anti ESG patchwork from Florida, Texas, and West Virginia have replaced the funded status story with an asset strategy story. CalPERS at USD 540 billion, CalSTRS at USD 358 billion, and Texas TRS at USD 211 billion are the marginal price setters.
US state and local pension assets stood at approximately USD 5.5 trillion at end Q4 2024 per Federal Reserve Z.1 table L.120.b, against accrued liabilities that the Public Plans Database and Pew Charitable Trusts mark in the USD 6.7 to 6.9 trillion range, leaving an aggregate unfunded liability near USD 1.4 trillion and an aggregate funde...