States explore reforms as costs of pensions and other benefits add to fiscal pressure
WASHINGTON - The 50 states have accrued a large liability for public sector retirement benefits, and these bills could cause serious budget problems, according to a report from the Pew Center on the States, to be released Thursday, February 18. Wide gaps exist between the costs of these obligations and the assets states have set aside to cover them.
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In the last 10 years, many states have not fully paid the annually required contributions to their funds for retirees' pensions, health care and other benefits. Budget shortfalls and investment losses have made saving for these future costs more difficult, but ignoring the mounting balance due comes at a price. If states do not make full payments consistently or contain the size of their liabilities, taxpayers could suffer the consequences through higher taxes and less funding for public services.
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Pew's report highlights the effects of inaction and examines reforms that a growing number of states are using to ensure that funding matches their commitments to current employees and retirees.
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Pew Center on the States
The Pew Center on the States is a division of The Pew Charitable Trusts that identifies and advances effective solutions to critical issues facing states. Pew is a nonprofit organization that applies a rigorous, analytical approach to improve public policy, inform the public and stimulate civic life. www.pewcenteronthestates.org.
/PRNewswire-USNewswire -- Feb. 11/
WHAT: Pew Center on the States Webinar - release of report detailing states' growing retirement bills and assessing states' handling of pension, health care and other retirement benefit costs, including: -- National and state-by-state data on the price tag of promised retirement benefits and the funds states have set aside to pay those costs; --Factors driving gaps between states' liabilities and assets; and --Reforms states are making to balance funding with benefit promises made. WHEN: Webinar at 11 a.m. Eastern Time, Wednesday, February 17, 2010 ***Report embargoed until 12:01 a.m., Thursday, February 18, 2010*** WHERE: Phone (required for audio) Dial: 1-888-299-4099 Access Code: VM31557 Webinar Registration (optional, for viewing shared slides) https://www2.gotomeeting.com/register/906099658 WHO: Susan Urahn, managing director, Pew Center on the States
SOURCE Pew Center on the States
