States Are Already Paying for Unfunded Pensions

He also argues that the pension problem has a larger effect on bonds with longer maturities, a clue that unfunded liabilities are most likely to affect state solvency 10–20 years down the road. But already, unfunded pensions are increasing states’ borrowing costs, compounding fiscal …

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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 …

reason.org

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How Big Is Your State’s Share Of $6 Trillion In Unfunded Pension ...

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Dec 21, 2017 · Despite a solid year for investment returns, the unfunded liabilities of state and local government pension plans increased by $433 billion, the most recent estimate from the …

heritage.org

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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, …

alec.org

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States Remain At Risk Due To Unfunded Pension Liabilities

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The report finds state governments’ unfunded liabilities total $5.82 trillion nationwide – an average of $17,748 per person. This comparative analysis of state pension systems is a valuable tool …

alec.org

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Pension Tension: 15 States With The Worst Public Pensions

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Sep 9, 2021 · THE 15 WORST STATES FOR PENSIONS 15. ARIZONA FROM THE REPORT: "Arizona's unfunded pension liabilities jumped by just under 13% from 2016 to 2017, taking …

benefitspro.com

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

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Jul 14, 2022 · Its funded ratio will drop from 82.5% in 2021 to 73.6% in 2022, meaning state employers will have less than three-quarters of the assets needed to pay for pensions already …

reason.org

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CT Pension Financing Is Inequitable For Both Teachers And Students

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1 hour ago · The majority (73%) of school teachers and staff in Connecticut earn between $60k and $120k per year. But some earned significantly less than that: during the 2022-23 year …

ctmirror.org

FAQs about States Are Already Paying for Unfunded Pensions 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. ...

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. ...

Are state pension plans fully funded?

By Grace Harrison State and local pension plans provide retirement benefits and payments to more than 20 million individuals. These obligations are not always fully funded, though, resulting in a projected cumulative $1.3 trillion funding gap for states following negative fiscal year 2022 returns. ...

Which states have highest unfunded pension obligations?

After New Jersey (20.2% of personal income), unfunded pension obligations were highest in Illinois (19.4%), Hawaii (18.0%), Alaska (16.3%), and New Mexico (15.7%). South Dakota and Wisconsin were the only two states where pension plan savings exceeded the value of what they owed. ...

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. ...

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. ...