The Trillion Dollar Gap: Arizona
Underfunded State Retirement Systems and the Roads to Reform
Arizona is a national leader in managing its long-term liabilities for both pensions and retiree health care and other benefits. It has funded 80 percent of its total pension bill, right at the minimum benchmark that the U.S. Government Accountability Office says is preferred by experts. In 2008, the state increased the employee contribution for the Corrections Officer Retirement Plan.
Arizona leads the nation in funding its retiree health care and non-pension benefits, with 65 percent of this liability accounted for. The Grand Canyon State is one of only two states—along with Alaska—that have pre-funded more than half of this long-term bill coming due.