100 Percent Committed: Why Philadelphia Should Aim for Full Pension Funding

Publication Date: August 29, 2025

Summary

The City of Philadelphia has made significant progress toward fully funding its pension obligations, with reforms and steady contributions raising its funded ratio from 45 percent in FY16 to a projected 90 percent by FY30. The report explains how continuing on this path enhances credit ratings, lowers long-term costs, and strengthens the City’s fiscal stability, particularly by reducing reliance on costly amortization payments. Choosing anything less than full funding would risk reversing hard-won gains and increase future burdens on taxpayers, budgets, and essential City services.