Fitch Rates State Pensions

So which state has the highest pension burden among all 50 states?

According to an article on the Fitch report:

Illinois’ unfunded pension liabilities amounted to 22.8% of residents’ personal income at the end of fiscal year 2016, compared to a median 3.1% for all states and 1% for Florida, the least burdened state.

The median 3.1% for all states is higher than the approximately 2.9% reported in fiscal year 2015, which Fitch attributed in the report to weak asset performance, reduced discount rates, inadequate employer pension contributions, and “ongoing unfavorable demographic and actuarial trends.”

Douglas Offerman, senior director at Fitch Ratings, noted that a number of states with the highest pension burdens — Illinois, Kentucky, New Jersey and Massachusetts — help cover the cost of local teachers’ pensions. Teachers make up one of the largest populations of public-sectors workers, Mr. Offerman said.

Under Fitch’s calculations, Illinois’ net pension liabilities totaled $151.5 billion at the end of fiscal year 2016; New Jersey, $91.8 billion; Massachusetts, $48.9 billion; and Kentucky, $32.8 billion. For this year’s report, Fitch used a 6% discount rate to calculate net pension liabilities, down from 7% last year.

You need to be a Fitch subscriber to get to see the report so the best I can do here is extrapolate from the numbers above on unfunded liabilities and Wikipedia census:

35 responses to this post.

  1. Posted by Anonymous on December 12, 2017 at 8:25 pm

    Hey at least we didn’t come in first (or is it last)…..besides if it works for Trump why not here – just more fake news from mainstream media!

    Reply

  2. Posted by Anonymous on December 12, 2017 at 8:40 pm

    All are blue States

    Reply

    • Posted by Anonymous on December 13, 2017 at 7:40 am

      Kentucky?? Which by the way already had reforms around or before NJ’s. Problem is when you don’t pay in before and after the reforms!

      Reply

    • Posted by State Aid Guy on December 13, 2017 at 11:40 am

      Kentucky isn’t a blue state, but until 2017 it had mandatory agency fees for public workers.

      Kentucky’s public sector unions were thus much more powerful than unions were in most other Southern states and Red states.

      Reply

  3. Posted by George on December 13, 2017 at 1:32 pm

    Misspelling of population on the table.

    Is the NJ unfunded liability really $92 B. Fitch might be trying to say to bondholders who pay them, don’t worry the unfunded liability is 27% of one year ‘personal’ income or 1% of income for 27 years. Just a bit of belt-tightening and modest tax increases. I thought the unfunded liability was in the $300 Billion range. Does fitch include medical and other benefits? How do NJ state medical benefits work if you leave the state?

    Florida seems like a nice destination.

    Reply

    • Posted by Anonymous on December 13, 2017 at 1:53 pm

      Florida is, great weather (except for the occasional hurricane) and they pay their bills, including employer pension contributions! Amazing how that helps the unfunded lability!! While salaries are generally lower so is the cost of living. Keep in mind until ~2011 employees paid ZERO contributions and they still have DROP for ALL employees.

      Reply

    • Posted by Anonymous on December 13, 2017 at 2:13 pm

      RE: How do NJ state medical benefits work if you leave the state?

      Like most PPO they have some sort of National network. Stay in network and copays apply, go out of network and game over b/c normal and customary doesn’t apply. Once Medicate is primary game changes again and Medicare dictates the rules and your secondary coverage follows them.

      Reply

      • Posted by Anonymous on December 13, 2017 at 2:17 pm

        My sister is a retired Teacher from NJ for about 10 years .She just had a hip replacement what medicare didn’t cover her supplemental from NJ picked up ..oh and she moved to NC right after she retired

        Reply

        • Posted by Anonymous on December 13, 2017 at 2:49 pm

          Um that’s why it’s called a Medicare supplement BUT you must go to a provider/facility that accepts Medicare assignment. Pretty straight forward.

          BTW OF she worker for 10 years then she’s paying 100% of the coverage cost & employer is paying nothing. More half truth distortions.

          Reply

          • Posted by Anonymous on December 13, 2017 at 2:50 pm

            OF s/b IF and worker s/b worked…..

          • Posted by Anonymous on December 13, 2017 at 3:56 pm

            Him not say “she worker for 10 years”.

            Him say she “retired” for about 10 years.

            Sounds like you s/b…

          • Posted by Anonymous on December 13, 2017 at 4:52 pm

            Me sorry I’m tired up all night tweeting for our guy in AL he should of wonbut I knew he’d lose. Fake news got him like it got my reply. Post editing by the mainstream media.

          • Posted by Tough Love on December 13, 2017 at 5:31 pm

            Anon,

            He Moore) should have won ? Do we need/want Congressmen who in their 30’s sought out 14 year old girls?

            And waving the gun on camera was telling…….. he’s an jackass, as well as a perv.

          • Posted by Anonymous on December 13, 2017 at 7:02 pm

            Wonder why Roy Boy didn’t get crushed in the supremely religious south?

        • Posted by Anonymous on December 13, 2017 at 2:59 pm

          Clarification, only exception is a Disability Retirement?

          Reply

  4. Posted by Anonymous on December 13, 2017 at 3:03 pm

    Brother living in Nevada. Retired at 48 healthy (60 now). BCBS pays everything.

    Reply

    • Posted by Anonymous on December 13, 2017 at 3:10 pm

      Mother in law retired at 59 healthy now 91 her ‘major medical’ continues to pay everything AND ALL Rx copays are $1!! Yup you guessed it private sector worker/retiree!

      Reply

      • Posted by Tough Love on December 13, 2017 at 5:35 pm

        ALL RX copays (which would include generic, in formulary, Brand name out-of-formulary, and specialty drugs) for $1 under retiree coverage from a Private Sector company.

        Sounds EXTREMELY unlikely. Care to identify the company providing these retiree benefits?

        Reply

        • Posted by Anonymous on December 13, 2017 at 7:20 pm

          Why so you can start bashing the company/industry nah – you have continually refused to reveal your self interest (is occupation).

          Reply

          • Posted by Tough Love on December 13, 2017 at 7:26 pm

            No, because I think you are lying and a Private Company is NOT offering such benefits.

            Naming the company would enable readers to determine for themselves whether you are lying.

          • Posted by Anonymous on December 13, 2017 at 8:24 pm

            Think as you always do but truth be told – name yours you liar!

          • Posted by Anonymous on December 13, 2017 at 8:54 pm

            Good night love, time to change some light bulbs on pensionable overtime and while in DROP – CA style!

      • Posted by George on December 14, 2017 at 5:24 pm

        My father worked for an American private sector company. They paid for his medical care abroad, and when my mother later died they paid for her very expensive end of life care. So it is possible. But my father did actually get paid less than certain other go get’er types. Perhaps Mr Bury can comment on the state of private sector lifetime health benefits?

        Reply

  5. Posted by Anonymous on December 14, 2017 at 10:15 am

    Friend retired recently from a pharmaceutical company gets free pharma for life.

    Reply

  6. Posted by Anonymous on December 14, 2017 at 10:57 am

    I believe so. Maybe there is reciprocity between companies of some kind.

    Reply

  7. Posted by Unanymous on December 14, 2017 at 3:50 pm

    “No, because I think you are lying and a Private Company is NOT offering such benefits.”

    Wow! Just wow.

    For what it’s worth…

    https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.bls.gov/news.release/pdf/ebs2.pdf&ved=0ahUKEwiJoqzurYrYAhXDz4MKHd2YBtEQFgh6MAM&usg=AOvVaw3hShmbLLW0PMsORPR3CaQc

    Reply

    • Posted by Tough Love on December 14, 2017 at 5:32 pm

      Wow what ?

      I was questioning an extraordinary unusual benefit (free Pharm)

      And as to your link………….

      A few quotes:
      (1) Retirement and medical care benefits were available to 70 percent of civilian workers in March 2017, the U.S. Bureau of Labor Statistics reported today.
      (2) Highlights of employer-sponsored benefits for state and local government workers:
      Among full-time workers, access to both retirement and medical care benefits was 99 percent.

      Did you note the difference…70% vs 99%?

      Also, NOTHING in this report addresses Employer-sponsored Medical Care in retirement, a VERY common benefit in the Public Sector while extremely rare for someone in Corporate America to be earning such benefits today.

      Reply

  8. Yeah, it’s complicated.

    “Wow! Just wow.”

    Wow what?… Your ability to go right to calling someone a liar when you actually don’t know squat.

    My wife’s mother and our daughter’s father in law are both on IBEW pensions and healthcare. I don’t know the details, but they seem very comfortable.

    There are definitely some generous retiree healthcare systems out there. As I recall the Kaiser plan, it is fully paid for family, including dependent parents, and from the other link, benefits seem to be much more generous for management, executives, and in financial and insurance employers.

    But go right for the LIAR charge, it’s expected of you.

    https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.bls.gov/opub/mlr/cwc/retiree-health-care-benefits-data-collection-issues.pdf&ved=2ahUKEwjm-964lovYAhUH5IMKHcWmCP0QFjAEegQIChAB&usg=AOvVaw07hsjV1UL1s3-McJp0J3TC

    Grow up.

    Reply

    • Posted by Tough Love on December 15, 2017 at 12:23 am

      Turkey ………. did you realize you link is from 2003?

      At least TRY to find something relevant……….. and for comparison with Public Sector Plans, stick to NON-Union Plans in the Private Sector (which include FAR more Private Sector workers).

      Reply

  9. “Forty-five percent of all retirees ages 55 to 64 have retiree health coverage, 2012”

    “Nearly one in three Medicare Beneficiaries has a retiree health plan that supplements Medicare”

    https://www.kff.org/report-section/retiree-health-benefits-at-the-crossroads-overview-of-health-benefits-for-pre-65-and-medicare-eligible-retirees/

    ………………………..
    It is pretty common knowledge that public sector workers have better pensions and benefits than private sector workers… and lower wages on average. And there is a large variety in both sectors. They just aren’t all the same.

    There are some private sector benefits that are very generous, and some public plans that aren’t.

    But don’t bother to actually check, just go with your “opinion”.

    Reply

    • Posted by Tough Love on December 15, 2017 at 2:21 am

      Quoting SMH ………….

      “It is pretty common knowledge that public sector workers have better pensions and benefits than private sector workers… and lower wages on average.:”

      But AGAIN, you left out that in NJ and CA (your home state) the “NET” of those pluses and minuses (for all workers combined) is a Public Sector Total Compensation ADVANTAGE of 23% of pay (33% with Job security included), and even HIGHER when Safety workers are included in the comparison.

      You, being a retired CA worker (light bulb changer) are just one of the “moochers”.

      Reply

  10. “the “NET” of those pluses and minuses (for all workers combined)”

    Is BS. The minuses are a bargain. And the “roughly equal” are a push. Got a problem with EQUAL?

    SMH

    Reply

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