Thursday, October 14, 2010
Maryland & States Grapple With Unfunded Pension Funds
As stocks plummeted two years ago, so did the pension fund's balance sheet. With liabilities exceeding $50 billion, the fund now has little more than $31 billion in assets. Against the $15 billion owed for health care and other benefits, the state has less than 1 percent on hand.
Maryland is one of 19 states facing serious long-term problems. The state's pension fund was fully funded in 2002; now assets are just 65 percent of liabilities. It is one of just eight that has made no real progress in restoring the health of its retiree benefit plan
A state commission has started looking into the problem and is set to make recommendations this year. Some painful choices are going to have to be made. (Wash Post, 10/13/2010)