The Nine States with the Most Underfunded Pensions

File under: The Developing Crisis

According to data released this week by Milliman, Inc. and by the Pew Center on the States, there was a $859 billion gap between the obligations of the country’s 100 largest public pension plans and the funding of these pensions.

In 2010, only Wisconsin’s pension funds were fully funded. Nine states, meanwhile, were 60% funded or less — this would mean that at least 40% of the amount the state owes current and future retirees is not in the state’s coffers.

Based on Pew’s report, “The Widening Gap Update,” and the level of funding for the 100 largest pension funds in each state, provided by Milliman’s Public Pension Fund Study, which covered a period from June 30, 2009, to January 1, 2011, 24/7 Wall St. identified the nine states with sinking pensions:

1. Illinois

> Pct. liability funded: 45%
> Total liability: $138.8 billion
> Total funded: $62.5 billion


2. Rhode Island

> Pct. liability funded: 49%
> Total liability: $13.4 billion
> Total funded: $6.6 billion

3. Connecticut

> Pct. liability funded: 53%
> Total liability: $44.8 billion
> Total funded: $23.8 billion

4. Kentucky

> Pct. liability funded: 54%
> Total liability: $37.0 billion
> Total funded: $20.0 billion

5. Louisiana
> Total liability: $41.4 billion
> Total liability: $9.0 billion
> Total funded: $5.3 billion


6. Oklahoma

> Pct. liability funded: 56%
> Total liability: $36.4 billion
> Total funded: $20.4 billion


7. West Virginia

> Pct. liability funded: 58%
>Total liability: $15.0 billion
> Total funded: $8.7 billion


8. New Hampshire

> Pct. liability funded: 59%
> Total liability: $9.0 billion
> Total funded: $5.3 billion




9. Alaska

> Pct. liability funded: 60%
> Total liability: $16.6 billion
> Total funded: $10.0 billion