Funded Ratio (FR):
Assets / Accrued Liabilities
is a faulty indicator of which state has the biggest pension problem since the liability numbers are surely fudged* so as to develop contributions as low as possible. But, since we did the grunt work of pulling off the data from state actuarial reports, it is easy enough to sort and subtotal all the data by state which show that, with an FR of 45.78% and total unfunded liabilities of over $135 billion (also the most), the worst funded state pension system is….
* And by fudged I do not mean within any 5% IRS corridor for being acceptable. The $1 trillion official unfunded liability has gotten as high as $8 trillion to some minds. The New Jersey plans put their Accrued Liability (AL) as of July 1, 2015 at $146 billion for 773,133 participants including 313,438 retirees. That comes to less than $190,000 per participant as a present value. With retirees getting $9.6 billion annually, many on J&S normal forms and at earlier retirement ages than the private sector, that $146 billion AL number would be closer to the mark if it applied only to the retirees.