Business, Money, National, News, Politics, State/Region — April 12, 2018 at 12:54 pm

State-Run Pension Plans Facing Problems

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Government Building
Photo curtesy of Ian Brown
(Flikr.com)

A study on state-run pension plans for public workers reported that unfunded liability is at $1.4 trillion.

 

The Pew Charitable Trust claims that this underfunding is due to state officials in decades past raising retiree benefits without planning for ways to pay for them.

Some states have been trying to balance the cost of pensions by using funds previously allocated for education, public safety, and parks.

Pew reports that the underfunding leaves states in a risky situation if the national economy drops again.

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