Deltek Sr. Analyst Chris Cotner reports.
The U.S. Census rather quietly produced a report this month on public employee retirement systems. Overall, pension news is very good and improving, with balances improving in FY 2010 after two straight years of losses. For FY 2010, cash and investment holdings for state-administered pensions increased to $2.2 Trillion (or up $190 Billion) from FY 2009 (see Figure 1, below). This is the first increase in overall balances since 2007 and fantastic news for the GovCon community. Quite simply, this will further ease pressure on state financials and open the door for state and local procurement. GovCon conractors struggling with the federal market would do well to invest in state and local. Businesses not at all engaged in GovCon should consider this a growth opportunity.
Figure 1: Overall State Pension Growth FY 2009-2010
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Sources: Deltek, U.S. Census, NASBO, and the LA Times.