The Pew foundation recently released its “The Widening Gap: The Great Recession’s Impact on State Pension and Retiree Health Care Costs” document. It reportsd that states have a cumulative retiree and healthcare shortfall of $1.26 trillion. Many other states have not made ongoing contributions at the rate that experts suggests, to get their funds in line with the obligations of those funds, reports 24/7WallSt.
Here, according to 24/7WallSt, are the 10 states with the most serious problems based on the data from the Pew study:
10. Pennsylvania
> Pension Liability: $111 billion
> Percent of Pensions Funded: 81% (17th highest)
> 2009 Actuarially Recommended Contribution: $2 billion
> 2009 Actual Contribution: 31% (lowest)
9. Maryland
> Pension Liability: $53 billion
> Percent of Pensions Funded: 65% (11th lowest)
> 2009 Actuarially Recommended Contribution: $1 billion
> 2009 Actual Contribution: 84% (16th lowest)
8. Colorado
> Pension Liability: $55 billion
> Percent of Pensions Funded: 69% (17th lowest)
> 2009 Actuarially Recommended Contribution: $1 billion
> 2009 Actual Contribution: 66% (5th lowest)
7. Massachusetts
> Pension Liability: $61 billion
> Percent of Pensions Funded: 68% (16th lowest)
> 2009 Actuarially Recommended Contribution: $2 billion
> 2009 Actual Contribution: 66% (5th lowest)
6. Kansas
> Pension Liability: $21 billion
> Percent of Pensions Funded: 64% (10th lowest)
> 2009 Actuarially Recommended Contribution: $660 million
> 2009 Actual Contribution: 68% (7th lowest)
5. Oklahoma
> Pension Liability: $35 billion
> Percent of Pensions Funded: 57% (3rd lowest)
> 2009 Actuarially Recommended Contribution: $1 billion
> 2009 Actual Contribution: 77% (11th lowest
4. New Jersey
> Pension Liability: $135 billion
> Percent of Pensions Funded: 66% (12th lowest)
> 2009 Actuarially Recommended Contribution: $4 billion
> 2009 Actual Contribution: 36% (2nd lowest)
3. New Hampshire
> Pension Liability: $8 billion
> Percent of Pensions Funded: 58% (4th lowest)
> 2009 Actuarially Recommended Contribution: $263 million
> 2009 Actual Contribution: 75% (10th lowest)
2. Illinois
> Pension Liability: $126 billion
> Percent of Pensions Funded: 51% (lowest)
> 2009 Actuarially Recommended Contribution: $4 billion
> 2009 Actual Contribution: 71% (8th lowest)
1. Kentucky
> Pension Liability: $36 billion
> Percent of Pensions Funded: 58% (4th lowest)
> 2009 Actuarially Recommended Contribution: $965 million
> 2009 Actual Contribution: 58% (3rd lowest)
Best avoid these states for retirement lest the tax bug bites you...and sucks you dry.
ReplyDeleteIt would be interesting reading the CAFR for those states to find the real numbers. I am willing to bet that they have a lot more money available than they claim but will use these numbers as an excuse to not pay or increase property/income taxes to fund the alleged underfunding.
ReplyDelete