January 18, 2011

States' Real Liabilities

Contact us
To speak with a scholar or learn more on this topic, visit our contact page.

This week, Veronique de Rugy examines the condition of states’ pension funds. While official reports claim that in 2008 state pensions were underfunded by $452 billion, with total liabilities of $2.8 trillion, these numbers change dramatically when private sector accounting methods are applied. Using methods that are required for private sector pensions, total liabilities for 2008 balloon to $5.2 trillion and the unfunded liability rises to $3 trillion.