How are the states doing with pension funded ratios?

The Tax Foundation has a new pension map. It shows the funding levels of plans in the states, based on a risk-free discount rate. The numbers were crunched by State Budget Solutions, using a yield on (notional) 15-year Treasury bonds of 3.2 percent.

They estimate that the overall funding gap in the states is $4.1 trillion, much larger than the $1.3 trillion typically reported when using the state’s own assumptions (or a discount rate of about 7.5 percent). According to this map, no state is anywhere near the general standard of 80 percent funded. Most states are hovering around the 30 to 40 percent funded ratio. The state with the lowest funded ratio is Illionis at 24%funded. Connecticut is next at 25% funded. The best funded are Wisconsin (57%) and North Carolina (54%) – better, but not great.

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2 thoughts on “How are the states doing with pension funded ratios?

  1. Bruce Walberg

    And the Grave yard Whistling goes on. With 1 state having only one foot in with the rest about to lay down and have the Dirt thrown on. How long do we have until this blows up and becomes a real crisis?

  2. Pingback: America’s best pension system? The case of Milwaukee

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