South Dakota, Wisconsin and North Carolina had the lowest per capita net pension liabilities at the end of the 2017 fiscal year. South Dakota is the only state in the U.S. with an overfunded pension system; Wisconsin and North Carolina were 99.1% and 90.7% funded, respectively.
New Jersey, Illinois and Connecticut had the highest per capita net pension liabilities. The states are also among the worst funded U.S. pension systems. Connecticut and New Jersey were also among the most indebted states, according to data collected by S&P Global Ratings, with per capita debt figures of $6,591 and $3,904, respectively.
S&P Global Ratings also compiled data on each state's exposure to risk assets, – global equities, real estate and alternatives – finding that 38 of the 50 states increased their target allocations to these asset classes. Illinois and Connecticut were among those states that lowered their risk asset allocations. Arizona and Mississippi were the most aggressive states in risk assets, with near 80% allocations and the most significant increases in those allocations between 2012 and 2017.