The average age at
which non-special plan PLD members retire is
increasing, similar to public pension plans
across the country. Public plans have
been moving from a retirement age of 60 to
62, and most recently 65, to match this
trend and the trend of people living longer.
Data is based on a report from the MainePERS retiree payroll database as
of December 31, 2012.
What is the Funding Status of the
The funding level of a pension plan is
frequently stated in terms of the ratio of
assets to liabilities, or pension
obligations. Although there are varied
opinions about pension plan funding status,
one commonly held opinion is that
well-funded plans target a 90-110% funded
ratio. The PLD Plan
maintained a funding status above 100% until
recent market downturns lowered the ratio to
a still well-funded 87%.
Why did the Funding Level Decline?
The PLD Plan has been overfunded for much of its
history. Employer rates were reduced to 3%
of payroll to bring the funding closer to
100%. Employer rates were scheduled to begin
to return to their original 8% when the
severe 2008 market downturn reduced the
amount of assets and the funding level of
the PLD Plan.