Veronique de Rugy explains that some people claim state pensions are not in crisis because of differing accounting standards.

“The states are using government accounting standards, which assumes 8 percent returns, which is really high,” said de Rugy. “With that standard, the state of New Jersey reports that its pension systems are underfunded by $44.7 billion. When you apply a standard used by private companies, methods that economists almost universally agree are more appropriate, New Jersey’s unfunded benefit obligation rises to $173.9 billion.”