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|
|2 (tie)||North Carolina||$79.6b||96%|
|2 (tie)||South Dakota||$7.5b||96%|
|Top 10 states for funding of state retiree health care, 2010|
|Rank 2010||State||Retiree health-care liability||Percent funded|
SOURCE: Pew Center on the States, 2012
*Data from 2009.