WASHINGTON | Thu 28 april 2011 10: 37 am EDT
WASHINGTON (Reuters)-the value of assets in State pension systems fell through 641.3 billion to $ 2 trillion in 2009, the US Census Bureau said in a report on Thursday that showed the deep damage to pension funds by the financial crisis.
The 24 percent decline followed a resulting loss of 152.2 billion dollars last year.
The declines came from a 485 billion dollar drop in profit on investments in 2009, after a loss of nearly $ 440 billion in 2008, according to the 2000 census.
Public pension funds are supported by contributions from workers and employers and income from investments, which more than half of the revenue. This makes the retirement systems, especially ones as big as California, a force in the markets.
The value of all public funds assets at 3.2 trillion peaked in 2007 when it fell by more than a quarter to 2.8 trillion in 2008, when the financial crisis took hold, according to the Federal Reserve.
Last week, said two public pension fund associations the assets held by retirement systems rose to 2.93 trillion in 2010, indicating that the worst of the crisis may be over.
While pensions systems for pensions to pay current retirees, they are able to short more than $ 600 billion for future benefits, a report from the Pew Center on the States said earlier this week.
In the $ 2.9 trillion U.s. municipal bond market are concerned that the major obligations may affect the creditworthiness of many States. On Wednesday that two of the three main rating agencies flags on fiscal state of New Jersey, citing the State $ 31 billion public pension deficit.
(Reporting by Lisa Lambert and Chip Barnett in New York; Edit by Padraic Cassidy)
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