A state auditor's report released Thursday shows that Minnesota's large public pension plans performed better in 2009 than the year before.
State Auditor Rebecca Otto said the rates of return for the funds ranged from nearly 16 percent to 27 percent. Otto said the numbers reflect recent improvements in the stock market.
However, she added, shrinking budgets pose challenges for public pension funds in the years to come.
"When salaries freeze or you have less people paying in, absolutely it affects your plan," said Otto. "You might have a contribution deficiency. So you always have to keep all that in mind in these pension plans."
Otto said the pension plans represent hundreds of thousands of public employees across the state.