Pension and Retiree Health Care Funding

Many states continue to face shortfalls between assets and liabilities

Pension and Retiree Health Care Funding

Many state-run retirement systems face significant shortfalls between the pension benefits that governments promised to their workers and the funding available to meet those obligations.

Some pension plans for state and local workers are well-funded, but unless changes are made in a number of other states, retirees, workers, and taxpayers will have to contend with rising costs and potentially unpaid promises for years to come.

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Hoover Dam Bridge
Issue Brief

The State Pension Funding Gap: 2018

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Issue Brief

At $1.24 trillion, the 50-state pension funding gap—the difference between a state retirement system’s assets and its liabilities—improved slightly in 2018 primarily due to strong investment performance.

Additional Resources

States of Innovation