State employee pension systems are facing severe shortfalls, and these growing liabilities threaten to drive many states deeper into the red, according to "State Pension Funds Fall Off a Cliff," a new 50 state study co-authored by Dr. Barry Poulson of the University of Colorado and Dr. Arthur P. Hall of the University of Kansas.
The report, published by the American Legislative Exchange Council, the nation's largest individual membership association of state legislators, shows that as of 2006, states have accumulated nearly $360 billion in unfunded pension obligations.
The problem has gotten much over the past three years as politicians on both sides of the aisle have stuck their head in the sand instead of dealing with the ticking time bomb.
Pennsylvania is among the states that has swept the pension issue under the rug, especially over the past seven years under Gov. Ed Rendell. The ALEC report says Pennsylvania had $14.4 billion in unfunded pension liabilities on top of $8.8 billion in state debt. And keep in mind that these are 2006 figures.
Follow the link below for more information and a link to download the full report.
Pension Crisis Threatens Financial Health of States
Originally posted at TONY PHYRILLAS
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