The states where pensions are safe - and where they are in trouble

The states where pensions are safe - and where they are in trouble

Kentucky has one of the worst public pension plans in the country, but it's just safe from being even worse.

The state's Supreme Court ruled against reform law which would reduce the benefits of public employees, including teachers, law enforcement, firefighters, social workers and government workers. Under the law, workers employed between 2003 and 2008 would have to pay 1% of their salaries for pensioners' health insurance and future teachers would have no benefit from retirement to death. The court ruled that the law, which was wrapped in a sewage services bill, had not received public comment or evidence, and that the state had no time to consider it before it was passed.

Look: The truth about pensions: They are not dead, but some are rare

Kentucky is not the only state with pension defects. The funding gap between assets and state pension system benefits promised workers across the country achieved $ 1.4 trillion in 2016, according to the Pew Charitable Trust, and states and municipalities are seeking to meet their needs. to better adapt their plans to meet the needs of pensioners. The average funding ratio in 2016 was 66%, and the total amount in liabilities (the amount owed to current employees, pensioners and dependents) for all these plans was $ 4 trillion.

States must also be concerned about market returns, which naturally affect the investment portfolios of their pensions, particularly in the case of some underfunded pension funds which may go into equity to make up the funding gap. The good news: an emerging downturn could encourage these plans to rebalance their portfolios, which will be awarded correctly.

The state pension plans, from the most funded to the smallest funding (the ratio of assets to total pension liability), are as follows, by Pew Charitable Trust: t

1. Wisconsin – 99%

2. South Dakota – 97% t

3. Tennessee – 94%

4. New York – 91%

5. Nebraska – 89% t

6. North Carolina – 88% t

7. Idaho – 88% t

8. Utah – 86%

9. Washington – 84%

10. Iowa – 82%

11. Delaware – 81%

12. Oregon – 81%

13. Florida – 79% t

14. Maine – 77%

15. Arkansas – 77%

16. Missouri – 77%

17. Georgia – 76%

18. Wyoming – 73%

19. Texas – 73%

20. Virginia – 72%

21. Nevada – 72%

22. Ohio – 72%

23. West Virginia – 72%

24. Oklahoma – 72%

25. Montana – 71%

26. California – 69%

27. Alabama – 67%

28. North Dakota – 66%

29. New Mexico – 65%

30. Kansas – 65%

31. Maryland – 65%

32. Vermont – 64%

33. Michigan – 64%

See also: Do not 401 (k) have you? You have a retirement plan for state governments

34. Indiana – 63%

35. Alaska – 63%

36. Arizona – 60%

37. Louisiana – 60%

38. New Hampshire – 58%

39. Massachusetts – 58%

40. Mississippi – 58%

41. South Carolina – 54%

42. Rhode Island – 54% t

43. Minnesota – 53%

44. Pennsylvania – 53%

45. Hawaii 51%

46. ​​Colorado – 46%

47. Connecticut – 41%

48. Illinois – 36%

49. Kentucky – 31%

50. New Jersey – 31%

The situation of the last five years has changed with some of the lower-funded states. In 2013, Illinois was the most funded pension plan, with Connecticut being the second last.

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