State pension funds have been under pressure since the stock market tumbled in 2008. The Great Recession forced states to slash budgets as revenues dropped, leaving future liabilities poorly funded and employees wondering if their promised retirement benefits would be paid.

Some states let their pension plans fall behind by delaying payments to the funds. That, coupled with an accelerating rate of retirement as the baby boom generation ages, spelled trouble.

And the data reported by states might not even tell the full story. An SEC commissioner said this year that trillions in unfunded liabilities are being hidden.

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Everything isn't gloom and doom, though. The rebounding of the stock and bond markets has helped some pension funds improve their positions. In fact, a Standard & Poor's report noted that pension funding had likely reached its low point.

Still, the report said continued management of state pension liabilities was key to ensuring that those facing funding gaps continue to rebound.

S&P looked at the strength of the public pension funds of all 50 states. The latest available data, which is from 2012, revealed the 20 Best and Worst State Pension Funds.

idaho10. Idaho

Percent funded: 84.6%

Trend: Down

9. Florida

Percent funded: 86.4%

Trend: Neutral

8. New York

Percent funded: 88.2%

Trend: Down

7. Delaware

Percent funded: 88.3%

Trend: Down

6. Tennessee

Percent funded: 91.5%

Trend: Neutral

oregon5. Oregon

Percent funded: 92.5%

Trend: Up

4. South Dakota

Percent funded: 92.6%

Trend: Down

3. Washington

Percent funded: 95.1%

Trend: Up

2. North Carolina 

Percent funded: 95.4%

Trend: Neutral

1. Wisconsin

Percent funded: 99.9%

Trend: Neutral

 

You've seen the best, now keep reading to see the states with the worst funded pension systems:

hawaii10. Hawaii

Percent funded: 59.2%

Trend: Neutral

9. Rhode Island

Percent funded: 58.1%

Trend: Down

8. Mississippi

Percent funded: 57.9%

Trend: Down

7. Kansas

Percent funded: 56.4%

Trend: Down

6. New Hampshire

Percent funded: 56.1%

Trend: Down

alaska5. Louisiana

Percent funded: 55.9%

Trend: Neutral

4. Alaska

Percent funded: 54.7%

Trend: Down

3. Kentucky

Percent funded: 49.9%

Trend: Down

2. Connecticut

Percent funded: 49.1%

Trend: Down

1. Illinois

Percent funded: 40.4%

Trend: Down

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