F119. State and Local Government Retirement Funds
Federal Reserve definition for F119 flow of funds table
This sector consists of retirement systems that are sponsored by recognized units of government whose members are public employees compensated with public funds.
The sector includes retirement funds of both state and local governments, such as counties, municipalities, townships, school districts, and special districts.
Each retirement system is a separately identifiable fund, financed at least in part with public contributions.
Pension funds that are supported solely by employee contributions are excluded from the sector; also excluded are assets administered by insurance companies or the Teachers Insurance and Annuity Association — College Retirement Equities Fund that provide public employee retirement coverage without any contribution or supplemental coverage administered by a government entity.
Pension funds like TIAA-CREF are not included in this sector.
In addition, deferred compensation plans administered in accordance with Internal Revenue Code section 457 are not included.
About half of the retirement funds' assets are held in the form of corporate equities; other assets are in the form of corporate, government, and agency bonds and other financial instruments.
The assets are assumed to be held for the benefit of the households and nonprofit organizations sector, so the funds' only liability is pension fund reserves, equal to the total of the funds' tangible and financial assets; the item appears as an asset on the households and nonprofit organizations sector statement.
