A state government's right-to-work status impacts the fiscal stability of its pension obligations, according to Loop Capital Markets' latest annual public pension funding review.
States with right-to-work laws have an aggregate funding ratio of 76.9% vs. 68.6% for non right-to-work states. They also contribute less of their budget to pension contributions (5.2% vs. 3.6%).
Right-to-work states also have lower unfunded pension liabilities per capita ($9,735 vs. $12,321 in non right-to-work states).
