Posts tagged pension liabilities
Report: Illinois has 5th highest amount of post-employment benefit liabilities
February 7, 2024 // Nationwide, current unfunded state OPEB liabilities are more than $1.14 trillion, or roughly $3,500 for every American man, woman and child. Only four states have a higher amount than Illinois, including Texas, New York, California and New Jersey. Two states, Nebraska and South Dakota, have zero liabilities after implementing defined contribution health care benefits. “OPEB liabilities in many cases are much different than pension liabilities because they are not protected by state constitutions or by contract law,” said Williams. OPEB plans have worse overall funding ratios than state pension plans. With an average funding ratio of merely 13.46%, many have no pre-funded assets whatsoever, allowing liabilities to grow rapidly year over year.