According to a report by the American Legislative Exchange Council (ALEC), the unpaid state pension bill in the U.S. totals $ 5.82 trillion
According to a report by the American Legislative Exchange Council (ALEC), unpaid state pension funds in United States a total of $ 5.82 trillion, equivalent to more than $ 17,000 for every person in the United States. This represents a $ 900 billion increase from last year’s council report.
The document surveyed more than 290 state-administered public pension plans, listing assets and liabilities for the period 2011-2019.
In the report, ALEC stated that the combined increase in pension payments puts great pressure on state governments, which should divert revenue that would otherwise be allocated to essential services such as public safety and education or assistance to taxes.
Contract and state laws mandate state governments to make this pension payment regardless of economic conditions.
The ALEC study also found that the 10 states with the most unpaid liabilities grew rapidly, thus increasing their share of total unpaid liabilities in the United States.
This means that California, Illinois, Texas, Ohio, New York, New Jersey, Pennsylvania, Florida, Georgia and Massachusetts, “account for 58 percent of all unpaid liabilities in the country, up from 57 percent previously. The return on investment has again fallen short of the forecasts in this year’s report, covering FY 2019, with an average return of 6.5 per cent instead of being considered 7.2 per cent. ” – READ MORE
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