Read the following excerpts from the March 27, 2016 article in Business Insurance, Public pension plans: A state of dysfunction.

Pension funds become troubled for two major reasons. The first is failing to adequately fund the plan. City and state pension systems are funded through employer and employee contributions and investment returns. Much of the success of a pension plan depends on whether sponsors make the required annual contributions determined by actuaries, sources said. Failing to do so is often a straight road to distress. In some cases, pension systems became complacent when markets were good and funding levels were high, and so they took a break from making necessary contributions.

But market conditions also play a significant role in pension funding, sources said. Volatility in returns on assets leads to big shifts in contribution requirements, and it's often the case that state and local governments cannot easily accommodate the kind of swings, Mr. Driscoll said.

Identify two common reasons for the challenge associated with identifying and making the proper contributions to properly fund the pension plans.

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Read the following excerpts from the March 27, 2016 article in Business Insurance, Public pension plans: A state of dysfunction.

Pension funds become troubled for two major reasons. The first is failing to adequately fund the plan. City and state pension systems are funded through employer and employee contributions and investment returns. Much of the success of a pension plan depends on whether sponsors make the required annual contributions determined by actuaries, sources said. Failing to do so is often a straight road to distress. In some cases, pension systems became complacent when markets were good and funding levels were high, and so they took a break from making necessary contributions.

But market conditions also play a significant role in pension funding, sources said. Volatility in returns on assets leads to big shifts in contribution requirements, and it's often the case that state and local governments cannot easily accommodate the kind of swings, Mr. Driscoll said.

Identify two common reasons for the challenge associated with identifying and making the proper contributions to properly fund the pension plans.