The consolidation of state–administered public pension systems in U.S. states

There is significant variation in the way state-administered pension systems are structured in the United States. Some states, for example, consolidate their pension activity into a few larger systems while others sponsor several smaller ones. In this paper we (1) identify arguments in favor of and against system consolidation, (2) measure levels of consolidation in state-administered pension systems, and (3) use logistic regression to examine whether levels of consolidation are associated with indicators of the financial health of state pensions. Our results provide preliminary support for claims that the size and concentration of pension activity are positively associated with measures of the financial health of state pensions.