$668,000 — a $100,000 decline. The Congressional Budget Office reported in May 2011 that "most state and local pension plans probably will have sufficient assets, earnings, and contributions to pay scheduled benefits for a number of years and thus will not need to address their funding shortfalls immediately. But they will probably have to do so eventually, and the longer they wait, the larger those shortfalls could become. Most of the additional funding needed to cover pension liabilities is likely to take the form of higher government contributions and therefore will require higher taxes or reduced government services for residents". U.S. city and municipality pensions In addition to states, U.S. cities and municipalities also have pension programs. There are 299 state pension plans and approximately 5,977 locally administered plans. The term unfunded liability represents the amount of money that would have to be set aside today such that interest and principal would cover the gap between program cash inflows and outflows over a long period of time. On average, pensions consume nearly 20 percent of municipal budgets. But if trends continue, over half of every dollar in tax revenue would go to pensions, and by some estimates in some instances up to 75 percent. The aggregate funded ratio for municipal plans in the US are slightly better than their statewide counterparts. Local plans are 78.2% funded in 2022, compared to 77.8% for statewide plans. However, the funding trends of municipally-managed plans are similar, if not identical to statewide plans. Most public pension unfunded liabilities reside within statewide retirement systems, primarily because they are simply larger, with more members and more promised benefits. Locally-managed public pension plans account for approximately 12% of all unfunded liabilities of non-federal retirement systems. Shift from defined benefit to defined contribution pensions The Social Security Administration reported in 2009 that there is a long-term trend of pensions switching from defined benefit (DB) (i.e., a lifetime annuity typically based on years of service and final salary) to defined contribution (DC) (e.g., 401(k) plans, where the worker invests a certain amount, often with a match from the employer, and can access the money upon retirement or under special conditions.) The report concluded that: "On balance, there would be more losers than winners and average family incomes would decline. The decline in family income is expected to be much larger for last-wave boomers born from 1961 to 1965 than