Pew Study Finds States Face $1 Trillion Shortfall in Retiree Benefits

by Sabrina I. Pacifici on February 22, 2010

“There was a $1 trillion gap at the end of fiscal year 2008 between the $2.35 trillion states had set aside to pay for employees’ retirement benefits and the $3.35 trillion price tag of those promises, according to a new report released by the Pew Center on the States. The shortfall, which will have to be paid over the next 30 years by state and local governments, amounts to more than $8,800 for every household in the United States. The figures detailed in Pew’s report, The Trillion Dollar Gap, Underfunded State Retirement Systems and the Roads to Reform, include pension, health care and other non-pension benefits promised to both current and future retirees in states’ and participating localities’ public sector retirement systems.”

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