State employee retirement systems are underfunded by a total of $4.1 trillion for a funding ratio of 38.7%, according to a report from State Budget Solutions, a non-profit organization advocating state budget reform.
The report, “Promises Made, Promises Broken — The Betrayal of Pensioners and Taxpayers,” uses data from fiscal year 2012 comprehensive annual financial reports and actuarial valuations from individual plans.
The overall actuarial assets of state pension funds in the 50 states, according to the report, total $2.6 trillion, while liabilities total $6.71 trillion.
The state with the lowest funding ratio is Illinois at 24.2%, according to the report. The state's public employee pension funds have $91.5 billion in assets and $378.6 billion in liabilities, according to the report.
Next is Connecticut, with actuarial assets of $25.5 billion and liabilities of $102.2 billion, for a funding ratio of 25%.
The report also states that Alaska, which has $10.3 billion in actuarial assets, and $34 billion in liabilities, for a funding ratio of 30.3%, has the largest unfunded liability per person in the state, at $32,425 per person. Next are Ohio at $24,893 per person; Illinois, $22,294; Connecticut, $21,378; and New Mexico, $20,530.
