From the summary:
A new pensions and retiree health care report from the Pew Center on the States, The Trillion Dollar Gap: Underfunded State Retirement Systems and the Road to Reform, shows why states must take strong action now–or taxpayers will suffer later.
To a significant degree, the $1 trillion reflects states’ own policy choices and lack of discipline:
• failing to make annual payments for pension systems at the levels recommended by their own actuaries;
• expanding benefits and offering cost-of-living increases without fully considering their long-term price tag or determining how to pay for them; and
• providing retiree health care without adequately funding it.
• Download the state fact sheets or use Trends to Watch to track national data and access previously unreleased data.
• Download Susan Urahn’s and Ronald Snell’s PowerPoint slide from the Webinar or listen to audio of the event. (MP3, 25.6 MB)