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Bailey McCann, Opalesque New York:

The funding ratio of state pension plans dropped four percentage points to 69 percent in fiscal year 2016, according to Wilshire Consulting. A year ago, Wilshire Consulting's annual state funding report uncovered a funding ratio of 73 percent.

"U.S. stock performance was low in the fiscal year ending June 30, 2016, while a strengthening U.S. dollar dampened already negative performance of non-U.S. dollar investments," noted Ned McGuire, vice president and a member of the Pension Risk Solutions Group of Wilshire Consulting. "Ultimately, the net effect was that the difference between pension liabilities and pension assets grew during the fiscal year."

The Wilshire 2017 Report on State Retirement Systems: Funding Levels and Asset Allocation is based upon data gathered by Wilshire Consulting from the most recent financial and actuarial reports issued by 131 retirement systems sponsored by the 50 states and the District of Columbia. Of the 131 systems studied, 103 systems reported actuarial values on or after June 30, 2016, and the remaining 28 systems last reported prior to that date. It is Wilshire Consulting's 21st report on the funding of state retirement systems.

Of the 103 state retirement systems that reported actuarial data for 2016, 97 percent have market value of assets less than pension liabilities or are underfunded. The average underfunded plan has a ratio of assets-to-liabilities equal to 66 percent. In comparison, of......................

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