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Arizona Pension Challenges

Pension problems, such as those in Arizona, are rooted in simple math, rather than in political ideology. Real pension reform is not easy.

Montana's Pension Challenges

Pension problems, such as those in Montana, are rooted in simple math, rather than in political ideology. Real pension reform is not easy.

Public Attitudes on Pension Reform in Kentucky

Recent polling indicates that Kentucky voters favor moving to a new retirement system for future public employees. Large majorities favor specific reform proposals, including the core provisions that would comprise a new retirement system.

A Widening Gap in Cities

A number of the nation’s key cities face unpaid bills for the retirement benefits they have promised their employees. This report examines pension and retiree health care funding in 61 cities—the most populous one in each state plus all others with populations over 500,000—and looks at options for reform.

Pew Study Finds 61 Cities' Retirement Systems Face $217 Billion Gap

Sixty-one key cities across America have emerged from the Great Recession with a gap of more than $217 billion between what they had promised their workers in pensions and retiree health care and what they had saved to pay that bill, according to a report released today by The Pew Charitable Trusts.

Kentucky's Pension Challenges

Pension problems, such as those in Kentucky, are rooted in simple math, rather than in political ideology.

Illinois Passes on Pensions, Boots Lawmaker

The Illinois Legislature emerged from a special session Friday with one less lawmaker and no plan to address the state’s soaring pension obligations.

Illinois Lurches Forward, One Budget Crisis at a Time

Illinois faces a series of budget problems, including its latest crisis on pensions. But the drumbeat of bad news makes it easy to miss the big steps the state has already taken.

The Widening Gap Update

The gap between the promises states have made for public employees’ retirement benefits and the money they have set aside to pay these bills was at least $1.38 trillion in fiscal year 2010, according to Pew's latest comprehensive analysis on pension and retiree health care funding.

State Fact Sheets: The Widening Gap Update

Widening Gap Update: Connecticut

Connecticut paid its full annual pension contribution just three times from 2005 to 2010. The system was 53 percent funded in ﬁscal year 2010 and faced a $12 billion funding gap.

Widening Gap Update: Alabama

Although Alabama consistently paid its full annual pension contribution from 2005 to 2010, its pension system was 70 percent funded in fiscal year 2010 and faced a $13 billion funding gap.

Widening Gap Update: Wyoming

Wyoming failed to pay its full annual pension contribution three times from 2005 to 2010. The pension system was 86 percent funded in fiscal year 2010 and faced a $1 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $261 million bill for retiree health care costs, none of which was funded, well below the 8 percent national average in 2010.

Widening Gap Update: Wisconsin

Wisconsin paid its full annual pension contribution from 2005 to 2010, and the pension system was fully funded in fiscal year 2010, facing only a $132 million funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $2 billion bill for retiree health care costs, 38 percent of which was funded, well above the 8 percent national average in 2010.

Widening Gap Update: West Virginia

West Virginia failed to pay its full annual pension contribution twice from 2005 to 2010. The system was 58 percent funded in fiscal year 2010 and faced a $6 billion funding gap in 2010 because of its pension liabilities. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $7 billion bill for retiree health care costs, 6 percent of which was funded, slightly below the 8 percent national average in 2010.

Widening Gap Update: Washington

Washington consistently failed to pay its full annual pension contribution between 2005 and 2010. The system was 95 percent funded in fiscal year 2010 and faced a $3 billion funding gap—the system’s funding level has gradually declined from a high of 126 percent in 2000. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $7 billion bill for retiree health care costs, none of which was funded, well below the 8 percent national average in 2010.

The Widening Gap Update: Virginia

Virginia failed to pay its full annual pension contribution from 2005 to 2010. The system was 72 percent funded in fiscal year 2010 and faced a $21 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $6 billion bill for retiree health care costs, 26 percent of which was funded, well above the 8 percent national average in 2010.

Widening Gap Update: Montana

Montana failed to pay its full annual pension contribution four times from 2005 to 2010. The system was 70 percent funded in fiscal year 2010 and faced a $3 billion funding gap.

Widening Gap Update: Missouri

Missouri failed to consistently pay its full annual pension contribution from 2005 to 2010. The system was 77 percent funded in fiscal year 2010 and faced a $13 billion funding gap.

The Widening Gap Update: Vermont

Vermont failed to pay its full annual pension contribution from 2005 to 2010. The system was 75 percent funded in fiscal year 2010 and faced a $1 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $2 billion bill for retiree health care costs, less than 1 percent of which was funded, well below the 8 percent national average in 2010.

Widening Gap Update: Mississippi

Mississippi paid its full annual pension contribution four times from 2005 to 2010, but the system was 64 percent funded in fiscal year 2010 and faced a $12 billion funding gap.

Widening Gap Update: Utah

Utah paid its full annual pension contribution from 2005 to 2010, but the system was 82 percent funded in fiscal year 2010 and still faced a $5 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $400 million bill for retiree health care costs, 22 percent of which was funded, well above the 8 percent national average in 2010.

Widening Gap Update: Minnesota

Minnesota consistently failed to pay its full annual pension contribution from 2005 to 2010. The system was 80 percent funded in fiscal year 2010 and faced an $11 billion funding gap.

Widening Gap Update: Texas

Texas failed to pay its full annual pension contribution four times from 2005 to 2010. The system was 83 percent funded in fiscal year 2010 and faced a $27 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $55 billion bill for retiree health care costs, only 1 percent of which was funded, well below the 8 percent national average in 2010.

Widening Gap Update: Massachusetts

Massachusetts failed to pay its full annual pension contribution four times from 2005 and 2010. The system was 71 percent funded in fiscal year 2010 and faced an $18 billion funding gap.

Widening Gap Update: Tennessee

Tennessee consistently made its full annual pension contribution between 2005 and 2010. The system was 90 percent funded in fiscal year 2010, and faced a $4 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $2 billion bill for retiree health care costs, none of which was funded, well below the 8 percent national average in 2010.

Widening Gap Update: Maryland

Maryland failed to pay its full annual pension contribution from2005 to 2010. The system was 64 percent funded in fiscal year 2010 and faced a $20 billion funding gap.

Widening Gap Update: South Dakota

South Dakota paid its full annual pension contribution four times from 2005 to 2010. The system was 96 percent funded in fiscal year 2010 and faced a $291 million funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $71 million bill for retiree health care costs, none of which was funded, well below the 8 percent national average in 2010.

Widening Gap Update: Maine

Although Maine paid, or exceeded, its full annual pension contribution from 2005 to 2010, the system was 70 percent funded in fiscal year 2010 and faced a $4 billion funding gap.

Widening Gap Update: South Carolina

Although South Carolina consistently paid its full annual pension contribution from 2005 to 2010, the system was 66 percent funded in fiscal year 2010 and faced a $15 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $9 billion bill for retiree health care costs, only 5 percent of which was funded, slightly below the 8 percent national average in 2010.

Widening Gap Update: Rhode Island

Although Rhode Island consistently paid its full annual pension contribution from 2005 to 2010, the system was 49 percent funded in fiscal 2010 and faced a $7 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $775 million bill for retiree health care costs, none of which was funded, well below the 8 percent national average in 2010.

Widening Gap Update: Pennsylvania

Pennsylvania failed to consistently pay its full annual pension contribution from 2005 to 2010. The system was 75 percent funded in fiscal year 2010 and faced a $29 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $17 billion bill for retiree health care costs, less than 2 percent of which was funded, well below the 8 percent national average in 2010.

Widening Gap Update: Oregon

Oregon paid its full annual pension contribution four times from 2005 to 2010, and the system was 87 percent funded in fiscal year 2010 but still faced an $8 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $768 million bill for retiree health care costs, 31 percent of which was funded, well above the 8 percent national average in 2010.

Widening Gap Update: Oklahoma

Oklahoma failed to consistently pay its full annual pension contribution from 2005 to 2010. The system was 56 percent funded in fiscal year 2010 and faced a $16 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state decided in 2008 that the health insurance available to its retirees did not qualify as a benefit. Oklahoma only acknowledges a minimal retiree health care obligation of about $3 million, none of which was funded, well below the 8 percent national average in 2010.

Widening Gap Update: Ohio

Ohio failed to consistently pay its full annual pension contribution from 2005 to 2010. The system was 67 percent funded in fiscal year 2010 and faced a $58 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $43 billion bill for retiree health care costs, 32 percent of which was funded, well above the 8 percent national average in 2010.

Widening Gap Update: North Dakota

North Dakota failed to consistently pay its full annual pension contribution from 2005 to 2010. The system was 72 percent funded in fiscal year 2010 and faced a $1 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $113 million bill for retiree health care costs, 30 percent of which was funded, well above the 8 percent national average in 2010.

Widening Gap Update: Louisiana

Louisiana failed to pay its full annual pension contribution three times from 2005 to 2010. The state’s pension system was 56 percent funded in fiscal year 2010 and faced an $18 billion funding gap.

Widening Gap Update: North Carolina

North Carolina consistently paid its full annual pension contribution from 2005 to 2010. While the pension system was 96 percent funded in fiscal year 2010—among the best in the country—it still faced a $3 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $33 billion bill for retiree health care costs, only 3 percent of which was funded, well below the 8 percent national average in 2010.

Widening Gap Update: Kentucky

Kentucky failed to pay its full annualpension contribution from 2005 to 2010. Its pension system was 54 percent funded in fiscal year 2010 and faced a $17 billion funding gap.

Widening Gap Update: New Mexico

New Mexico failed to consistently pay its full annual pension contribution from 2005 to 2010. The pension system was 72 percent funded in fiscal year 2010 and faced an $8 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also had a $3 billion bill for retiree health care costs, only 5 percent of which was funded, slightly below the 8 percent national average in 2010.

Widening Gap Update: Kansas

Kansas failed to pay its full annual pension contribution from 2005 to 2010. The pension system was 62 percent funded in ﬁscal year 2010 and faced an $8 billion funding gap.

Widening Gap Update: New York

New York consistently paid its full annual pension contribution from 2005 to 2010, but the state pension system fell to 94 percent funded in fiscal year 2010—down from 100 percent in 2009—and faced a $9 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded. The state also has an $11 billion bill for retiree health care costs, none of which was funded, well below the 8 percent national average in 2010.

Widening Gap Update: Iowa

Iowa failed to pay its full annual pension contribution between 2005 and 2010. As a result, its system was 81 percent funded in fiscal year2010 and faced a $5 billion funding gap.

Widening Gap Update: Indiana

Indiana paid, or exceeded, its full annual pension contribution four times from 2005 to 2010, but the system was 65 percent funded in fiscal year 2010 and faced a $14 billion funding gap. Of that unfunded liability, 80 percent was the result of the poorly funded State Teachers’ Retirement Fund.

Widening Gap Update: Illinois

Illinois consistently failed to pay its full annual pension contribution from 2005 to 2010. The system was 45 percent funded in fiscal year 2010—the lowest in the country—and faced a $76 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded.

Widening Gap Update: Idaho

Although Idaho consistently paid, or exceeded, its full annual pension contribution from 2005 to 2010, the system was 79 percent funded in fiscal year 2010 and faced a $3 billion funding gap.

Widening Gap Update: Hawaii

Although Hawaii paid its full annual pension contribution in all but one year from 2005 to 2010, the system was 61 percent funded in fiscal year 2010 and faced a $7 billion funding gap. Most experts agree that a fiscally sustainable system should be at least 80 percent funded.

Widening Gap Update: Florida

Although Florida consistently paid, or exceeded, its full annual pension contribution in all but one year from 2005 to 2010, the state was 82 percent funded in fiscal year 2010 and faced a $27 billion funding gap—down from fully funded just two years earlier.

Widening Gap Update: Delaware

While Delaware failed to consistently pay its full annual pension contribution from 2005to 2010, the system was 92 percent funded in fiscal year 2010—largely due to its strong past performance. Delaware faced a $633 million funding gap in 2010 because of its pension liabilities.

Widening Gap Update: Colorado

Colorado failed to consistently pay its full annual pension contribution from 2005 to 2010. The system was 66 percent funded in fiscal year 2010 and faced a $20 billion funding gap.