Joe Nation, Ph.D.
Pension Tracker Project Director
Bill Lane Center for the West
Glossary
Actuarial Basis
Funding liabilities and funded ratios using using discount rates reported by pension systems, currently an average of about 7.2%.
Actuarial Liability
Present Value of future benefits for current members, using discount rates reported by pension systems, about 7.2% in 2019
Source
Actuarial Pension Debt
Actuarial Liability minus Value of Assets.
Source
Assumed Rate of Return
Assumed investment rate of return. Also known as the discount rate.
Source
Households
Number of households in a state.
Source : U.S. Bureau of the Census, Fact-finder.
Market Basis
Funding liabilities and funded ratios using discount rates equal to the CalPERS high termination rate. The use of this discount rate is intended, as CalPERS is the largest US public pension.
Market Discount Rate
A discount rate equal to the CalPERS high termination rate, which ranged from 3% to 4.50% between 2008 and 2019.
Source : U.S. Department of the Treasury, Resource Center.
Market Liability
Present Value of future benefits for current members, discounted using the CalPERS high termination rate.
Source
Market Pension Debt
Market Liability minus Value of Assets.
Source
Pension Debt
Actuarial Liabilities or Market Liabilities minus Value of Assets. Also known as Unfunded Actuarial Liability, Unfunded Market Liability, or net pension debt. Example: Liabilities = $200; Assets = $100; Pension Debt = $100.
Population
Number of persons in a state.
Source : U.S. Bureau of the Census, Fact-finder.
State General Fund Expenditures ($)
Annual expenditures from a state's general fund.
Source : National Association of State Budget Officers, State Expenditure Reports.
State Total Expenditures ($)
Total expenditures from a state's general and all other funds.
Source : National Association of State Budget Officers, State Expenditure Reports
State Total General Fund Revenues ($)
Revenues to a state's general fund. District of Columbia includes tax revenues only.
Source : National Association of State Budget Officers, State Expenditure Reports.
United States
50 U.S. states plus the District of Columbia
Source
Value of Assets
Market or fair value of assets.
Source
