States' Pension Plan Funds Fell $1 Trillion Short in 2008

Publication: USA Today

Author: Brian Tumulty


02/18/2010 - States underfunded their pension plans and retiree health benefits by $1 trillion in 2008, a new report says.

The report, released Thursday by the Pew Center on the States, says 21 states had less than 80% of the money they needed to pay for future retiree pensions. In 2006, that was true of 19 states.

States that don't address their legal obligations to pay future pensions and retiree health benefits for their public employees may have to raise taxes, says Susan Urahn, managing director of the Pew Center on the States.

"States have built up a substantial balance that becomes harder to pay down the road," Urahn says.

To read the full article, "States' Pension Plan Funds Fell $1 Trillion Short in 2008," visit usatoday.com.

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