States’ Unfunded Pension Liabilities Persist as Major Long-Term ...

The degree of fiscal challenge these liabilities posed varies depending on the size of a state’s budget, economy, and population. For example, states with faster-growing economies may find their obligatio… See more

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States Remain At Risk Due To Unfunded Pension Liabilities

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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 …

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Reason Foundation - State Pension Tracker

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State Pension Tracker. According to annual valuation reports, unfunded retirement obligations owed to public workers by state-sponsored pension plans now exceed $1.3 trillion. Most states …

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Unfunded Liabilities In State Pension Plans Total Nearly $5 Trillion ...

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Jun 4, 2020 · This edition of Unaccountable and Unaffordable shows that pension underfunding existed long before COVID-19 caused major losses in public pension investments. The report …

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States With The Most Unfunded Retirement Benefits - Stacker

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Dec 15, 2022 · Collectively, states' unfunded pension benefits added up to $1.25 trillion in fiscal year 2019. That's 6.8% of total income. Only two states, South Dakota and Wisconsin, had …

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Reversal Of Pension Benefit Actions Could Pressure State Liabilities

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Oct 21, 2024 · These changes will increase Rhode Island's required state pension contributions by $27.5 million in fiscal 2025 and add about $434 million to the state and local unfunded …

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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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FAQs about States’ Unfunded Pension Liabilities Persist as Major Long-Term ... Coupon?

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. ...

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. ...

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. ...

Do state pensions cover retiree health care liabilities?

Like public pension liabilities, the cost of unfunded retiree health care benefits promised to public employees is greater than what states owe in debt. But unlike public pensions, states have set aside far less to cover the long-term costs of retiree health care liabilities—also known as other post-employment benefits, or OPEB. ...

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. ...

How much do States owe in public pension benefits?

Although still sizable, the gap between what states collectively have set aside and what they owe in public pension benefits narrowed after financial markets surged in fiscal year 2021, according to Pew projections. States owed a total of $1.25 trillion in unfunded pension benefits in fiscal 2019, the final year before the pandemic. ...