Across the country, state and local pension systems have not amassed enough assets (stocks, bonds, and other financial investments) to cover the retirement benefits promised to current and retired state and local employees. This gap is referred to as the pension funds’ “unfunded liabilities”.
According to the Pew Charitable Trusts, the unfunded liabilities of state-administered pension systems across the country were $1.1 trillion in 2015 – a 17 percent increase from 2014! According to the American Legislative Exchange Council, the unfunded liabilities is significantly higher, more than $6 trillion.
Read more at Forbes.