Unfunded pension liabilities are the dark cloud on the horizon of state budgets; a cloud totaling $4.1 trillion dollars for state-administered public pension plans, as SBS reported this year. Though they represent unavoidable fiscal debt, pension liabilities often slip under the radar when states tally up their spending, thanks to their status as "future payments" and accounting games. Aggressive pension reform is urgently needed in almost every state.
A recent group of studies by the GAO and Fed show how dire the situation really is. Read about them here.
Courts are weighing in on what pension reform is feasible. Check out our monthly pension litigation update here.