States have only 39 percent of the assets they need to cover their public employee pension obligations, according to an estimate from State Budget Solutions, a non-partisan, non-profit, national public policy organization. That estimate is based on an annual investment return of 3.2 percent (the 15-year Treasury bond yield as of August, 2013), instead of the 7 to 8 percent rate most of the pension plans themselves use, a rate which many critics say is overly optimistic. By that more conservative standard, the most funded pensions, in Wisconsin, are still underfunded by 43 percent. Illinois' pensions, the least funded, are underfunded by 76 percent.
The above article is provided by the State Net Capitol Journal. State Net is the nation's leading source of state legislative and regulatory content for all states within the United States. State Net daily monitors every bill in all 50 states, the District of Columbia and the United States Congress - as well as every state agency regulation. Virtually all of the information about individual bills and their progress through legislatures is online within 24 hours of public availability.
To subscribe to the Capitol Journal and access archived issue go to the State Net Capitol Journal
If you are a lexis.com subscriber, you can access State Net Bill Tracking, State Net Full Text of Bills, or State Net Regulatory Text. If you are interested in learning more about State Net, contact us.
For more information about LexisNexis products and solutions connect with us through our corporate site.