Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

State public retirement funds $50 billion short - Health care liability is only 1.9% funded

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
Home » Discuss » Places » Michigan Donate to DU
 
Bozita Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Feb-18-10 01:14 PM
Original message
State public retirement funds $50 billion short - Health care liability is only 1.9% funded
http://www.freep.com/article/20100218/NEWS06/2180470/13...

POSTED: FEB. 18, 2010
State public retirement funds $50 billion short
Health care liability is only 1.9% funded
BY DAWSON BELL
FREE PRESS STAFF WRITER


Michigan taxpayers are on the hook for more than $50 billion in unfunded pension and retiree health care for future public sector retirees, according to a new report on state retirement systems from the Pew Center on the States.

On the bright side, it's worse elsewhere. Californians have a $122-billion shortfall. Illinois, with the most underfunded pension system, is about $94 billion in the hole.

The calculations are based on state-by-state analysis of the cost of future benefits and the retirement systems' projected capacity to cover them.

Michigan's pension systems, which include state employees and school teachers, have $70.4 billion in anticipated payouts to current and future retirees.

About $11.5 billion of that is unfunded, according to Pew. Michigan's pension funds actually compare favorably to most other states, funded at an 84% level, above the national average and the 80% level recommended by experts, Pew said.

The picture for retiree health care is bleaker. Pew pegs Michigan's liability for health care and other non-pension benefits (such as life insurance) at $40.7 billion, with only a small fraction (1.9%) currently funded. Only California, New York, New Jersey and Illinois have larger gaps.

In most states, public pension benefits are legally sacrosanct; in Michigan, they enjoy constitutional protection. And a failure to reduce costs or save more in the interim "could lead to higher taxes," Huh said.

more...



Here's the Pew fact sheet on Michigan:
http://www.pewtrusts.org/uploadedFiles/wwwpewtrustsorg/...

Refresh | 0 Recommendations Printer Friendly | Permalink | Reply | Top

Home » Discuss » Places » Michigan Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC