State & Local Fiscal Facts

Introduction

An updated report from national organizations representing state and local governments, elected officials and public finance professionals on the fiscal condition of states and localities, municipal bonds, and public pensions.

Co-Signers

National Governors Association (NGA)
National Conference of State Legislatures (NCSL)
The Council of State Governments (CSG)
National Association of Counties (NACo)
National League of Cities (NLC)
The U.S. Conference of Mayors (USCM)
International City/County Management Association (ICMA)
National Association of State Budget Officers (NASBO)
National Association of State Auditors, Comptrollers and Treasurers (NASACT)
Government Finance Officers Association (GFOA)
National Association of State Retirement Administrators (NASRA)

Date published

March 2026

Contact

Jeannine Markoe Raymond, Director of Federal Relations

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Become A Member

Becoming a member of NASRA offers a unique opportunity to join a community committed to the sound, efficient, and innovative stewardship of public retirement systems. Membership connects you with a network of professionals and experts, providing valuable insights into managing public retirement systems with a focus on sustainability and risk-averse strategies.

By joining NASRA, you gain the tools and resources to enhance the management of public retirement systems, ensuring their long-term success and reliability for generations to come.

What's New at NASRA:
Hybrid Plans and Risk Sharing in Public Retirement Systems

Public defined benefit (DB) retirement plans have long incorporated hybrid features that share costs and risks between employers and employees. Under federal law, defined benefit plans that account for employee contributions are considered hybrid plans, meaning most state and local public pension plans meet this definition. Beyond shared contributions, many public plans incorporate additional risk-sharing provisions, including variable employee contribution rates and benefit adjustments tied to plan experience. These features demonstrate how public pension plans continue to evolve while preserving the core elements of retirement security.

NASRA's 2026 updated issue brief, State Hybrid Retirement Plans, examines two specific types of plans commonly identified as hybrids: combination DB-DC plans and cash balance plans. The brief explores how these designs distribute investment, longevity, and inflation risks between employers and employees. It also places these approaches within the broader continuum of risk-sharing arrangements already embedded in public retirement systems, highlighting the flexibility of public pension plan design in balancing retirement security with long-term financial sustainability.