States Remain at Risk Due to Unfunded Pension Liabilities

FOR IMMEDIATE RELEASE Contact: Alexis Jarrett [email protected] States Remain at Risk Due to Unfunded Pension Liabilities Unfunded pension liabilities exceed $5.8 trillion across the 50 states ARLINGTON, VA – (JUNE 24, 2021) Today, the American Legislative Exchange …

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States Remain At Risk Due To Unfunded Pension Liabilities

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State And Local Pension Funds 2022 - Hoover Institution

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of the unfunded liability fell to $5.120 trillion from $6.501 trillion due to substantial increases in risk-free discount rates, which are appropriate for measuring the value of a form of …

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2022 Marks A Return To Pension Funding Woes For States - Reason …

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Jul 14, 2022 · Early indicators point to investment returns averaging around -6% for the 2022 fiscal year, which ended on June 30, 2022, for many public pension systems. Based on a -6% …

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Tackling $8.28 Trillion In Unfunded State Pension Liabilities

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Jun 23, 2022 · In the sixth edition of Unaccountable and Unaffordable, the authors observed that unfunded state pension liabilities in the United States today stand at a whopping $8.28 trillion, …

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State Pension Challenges – Unfunded Liabilities Before And After …

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May 28, 2020 · State pension plans are short on funding for promised benefits by more than $1 trillion, but this shortfall didn’t develop overnight. Over the past couple of decades, pension …

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State And Local Pension Funds 2022 - Hoover Institution

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Mar 5, 2024 · This paper provides the status quo and trends of US state and local pension funds as of fiscal year 2022. Reported unfunded pension liabilities increased 46%, to $1.572 trillion, …

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Pennsylvania's Proposed Pension Increases For Public Retirees ...

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1 day ago · As of June 2023, the funded ratio of the two systems is 63.2% and 69.3% for PSERS and SERS, respectively. The unfunded public pension liabilities are $44.3 billion for PSERS …

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FAQs about States Remain at Risk Due to Unfunded Pension Liabilities Coupon?

How much money does a state pension system have in unfunded liabilities?

Based on an estimated annual investment return of 7% for public pension plans, Reason Foundation forecasts the 118 state pension systems analyzed have $1.3 trillion in total unfunded liabilities at the end of the 2023 fiscal year. ...

What are unfunded pension liabilities?

For most states, unfunded pension liabilities are the largest of three major long-term obligations weighing on their future finances, ahead of unfunded retiree health care benefits for public employees and outstanding debt. ...

Which states have the most unfunded pension liabilities in 2023?

Illinois and New Jersey are also forecast to have over $100 billion in unfunded liabilities at the end of 2023, followed by Texas with over $88 billion in public pension debt. In terms of funded rations, a pension plan’s assets as a percentage of its liabilities, the lowest-funded state is Kentucky. ...

How much are unfunded public pension obligations worth?

Abstract: Unfunded public pension obligations represent the largest liability for state and local governments in the United States. As of fiscal year 2021, the total reported unfunded liabilities of these plans is $1.076 trillion. In contrast, the market value of the unfunded liability is approximately $6.501 trillion. ...

Are state pension plans struggling to reduce unfunded liabilities?

State pension plans, in aggregate, have struggled to reduce unfunded liabilities to below $1 trillion ever since the Great Recession, seeing this number climb to nearly $1.4 trillion in 2020. ...

Are pension liabilities understated?

As a result, not only is the unfunded pension liability understated, but also the yearly pension cost for newly accruing liabilities. In order to achieve high returns, pension funds have accumulated large exposure to risky assets, in particular alternative investments, which results in highly uncertain investment returns. ...