Public employee pensions underfunded by US$4.1 trillion

Many state plans still under water.

Share:
  • Facebook
  • Twitter
  • Print
  • Email
  • Comment

water markThe funded status of state-level DB public pension plans reveals that public employee retirement promises are underfunded by US$4.1 trillion, according to a report.

The State Budget Solutions report, Promises Made, Promises Broken—The Betrayal of Pensioners and Taxpayers, finds that state public pension plans are just 39% funded.

The following states have the lowest funded ratios:

  • Illinois – 24%;
  • Connecticut – 25%;
  • Kentucky – 27%;
  • Kansas – 29%; and
  • Mississippi, New Hampshire and Alaska – 30%.

“This tragically amounts to $4.1 trillion in broken promises. Promises to taxpayers that public officials were managing funds appropriately and to pensioners who, quite frankly, did nothing wrong,” says Bob Williams, president of State Budget Solutions, a non-profit institution dedicated to fiscal responsibility. “Too many Americans worked their entire lives to now learn their states and local governments cannot provide what they promised.”

Add a Comment

Have your say on this topic! Comments that are thought to be disrespectful or offensive may be removed by our Canadian Investment Review admins. Thanks!

Transcontinental Media G.P.