States headed for disaster on pension and retiree health care costs
A new study by the study by the nonprofit, nonpartisan Pew Center for the States reveales that states came up a combined total of $1.38 trillion short between assets and what's needed to cover public sector pensions and health care benefits in 2010, with most continuing to lose ground.
California alone came up 25% short on its contribution for pensions and 71% short on the contribution required to fund retiree health benefits that same year.
Wisconsin is a bright spot, having fully funded its pension plan in 2010, while 34 states were below the 80% threshold. "California's public retirement systems' pension obligations were a combined $112 billion beyond the value of their assets in 2010...with anticipated retiree health costs adding another $77 billion in unfunded liabilities," according to the Sacramento Bee.
The trending continues to go the wrong way, states having fallen short in 2010 by 9% more than the previous year.