State pension funds are facing a combined unfunded liability of at...

State pension funds are facing a combined unfunded liability of at least $360 billion, according to Michael Schlachter, vice president at Wilshire Associates. "The situation is poor and probably getting worse," Mr. Schlachter said today at the Public Funds Summit in Phoenix. He added that a better stock market environment could lower public pension funds' liabilities, but few have asset allocations designed to maximize returns and improve their unfunded status.