Pew Study: State Retirement Systems Underfunded, Maryland Among Problems

A recent report by the Pew Center On The States details state pension system underfunding, chronicling over $1 trillion in unfunded liabilities across the state-run systems.

From the report:

The gap between the promises states have made for public employees’ retirement benefits and the money they have set aside to pay these bills was at least $1.38 trillion in fiscal year 2010, according to Pew’s latest comprehensive analysis on pension and retiree health care funding.

The full report details the nationwide issues, while a state fact sheet for Maryland identifies the shortfall for the state0run system, in which many local jurisdictions participate, and whose costs were substantially shifted to counties as part of the FY 2013 budget resolution.

From the Maryland summary:

Maryland’s retirement plans had a liability of $71 billion and the state has fallen $36 billion short in setting aside money to pay for it.

Michael Sanderson

Executive Director Maryland Association of Counties

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