SPRINGFIELD, Ill. (AP) — As the recession took its toll many states diverted scarce money away from pension plans to pay for more immediate concerns, and the amount of new costs states will owe the public retirement funds in the decades ahead ballooned to $757 billion, according to a study released Monday.
According to the Pew Center on the States, 34 states failed to maintain safe levels of money in the pension funds, which most experts agree is about 80 percent of long-term obligations. Four states — Connecticut, Illinois, Kentucky and Rhode Island — didn't even have 55 percent of the money they'll need in the long run.
The total gap between the money states had available and what they'll have to pay out in the decades ahead reached $757 billion in 2010, the most recent year for which figures are available. That was up 9 percent from the year before, according to the study entitled "The Widening Gap Update."
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