Trillion-Dollar Pension Gap Just Beginning Of States' Fiscal Woes

"U.S. states face a 13-figure shortfall in meeting their pension obligations to public employees, a new report by the Pew Center on the States has concluded. Just when you thought things couldn't get worse, keep in mind that the recently released data don't cover the latter half of 2008, when crashing markets cut many large public pension funds' assets by upward of 30%.

That $1 trillion-plus is but one piece of the growing debt bomb facing governments across the globe. For a look at which U.S. states are in danger of fiscal meltdown, visit our interactive Debt Atlas of America."

"A glance at the figures underlying states' pension gaps might indicate that some states are in better shape than others. While Illinois and most of New England (Connecticut, Massachusetts, New Hampshire and Rhode Island) all face pension under-funding approaching 50%, America's largest states, California, Florida, New York and Texas, went into the recession better prepared, with funding levels of roughly 85% or more. The stock market rollercoaster that's played out since mid-2008 didn't help matters, but the fact that fewer states had only enough funds to cover half their promises is somewhat good news."

http://www.forbes.com/2010/02/18/pension-gap-trillion-personal-finance-pew.html

Thank you government employees and state legislators (although there are many more people to blame for this)