Another chunk of the pension fundingshortfall came from assumption changes, with states mostly loweringthe assumed rate of return used to calculate pension costs. (Photo:Shutterstock)
The funding gap for state pensions grew for fiscal year 2016,with a number of failures to reach sustainability.
That's according to an analysis by the Pew Charitable Trusts, which examined 2016because it was the most recent year for which comprehensive datawere available for all 50 states. Among the problems it identifiedthat increased the gap were states coming up short on theirinvestment targets; setting those targets too high; andfailing toset aside enough money to fund pension promises made to publicemployees.
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
