A recent Pew Center on the States report found that most states are struggling to meet the long-term costs of their public-employee pensions and retiree health care benefits, largely due to the lingering effects of investments made before the financial crisis.
BY BRANDON SAWYER
A recent Pew Center on the States report found that most states are struggling to meet the long-term costs of their public-employee pensions and retiree health care benefits, largely due to the lingering effects of investments made before the financial crisis. In fiscal year 2010 there was a $1.38 trillion gap between public-sector retirement obligations and assets set aside, a 9% increase from 2009. Oregon fared much better than most states but needs improvement on pension funding. The state had a $60.1 billion long-term liability for retirement plans in 2010 and set aside $8 billion less than was recommended, according to Pew.
| Top 10 states for funding of public sector pensions, 2010 | |||
| Rank 2010 | State | Public pension liability | Percent funded |
| 1 | Wisconsin | $80.8b | 100% |
| 2 (tie) | North Carolina | $79.6b | 96% |
| 2 (tie) | South Dakota | $7.5b | 96% |
| 4 | Washington | $61.7b | 95% |
| 5 | New York | $156.6b | 94% |
| 6 | Delaware | $7.9b | 92% |
| 7 | Tennessee | $35.2b | 90% |
| 8 | Oregon | $59.3b | 87% |
| 9 | Wyoming | $7.7b | 86% |
| 10 | Georgia | $81.1b | 85% |
| Top 10 states for funding of state retiree health care, 2010 | |||
| Rank 2010 | State | Retiree health-care liability | Percent funded |
| 1 | Arizona | $2.3b | 69% |
| 2 | Alaska | $12.4b | 50% |
| 3 | Wisconsin * | $2.5b | 38% |
| 4 | Ohio * | $43.2b | 32% |
| 5 | Oregon | $767.6m | 31% |
| 6 | North Dakota | $162.0m | 30% |
| 7 | Virginia * | $5.9b | 26% |
| 8 | Utah | $510.4m | 22% |
| 9 | Kentucky | $8.8b | 15% |
| 10 | Colorado | $2.2b | 14% |
SOURCE: Pew Center on the States, 2012
*Data from 2009.
