Unfunded cost of retirement benefits reaches $1.14 trillion: Report

(The Center Square) – New Jersey, California, New York, Texas and Illinois face a hundred billion plus deficit when it comes to paying for the benefits other than pensions promised to state retirees.

The State of New Jersey’s unfunded liability for post-retirement benefits other than pensions in state health care plans reached $174.9 billion in 2022. That was the highest in the country, according to a report by the American Legislative Exchange Council. The report stated the nationwide costs of state-sponsored post-retirement benefits reached $1.14 trillion in 2022.

California ($140.2 billion), New York ($133.2 billion), Texas ($120.2 billion) and Illinois ($103.1 billion) rounded out the top five states with the highest liabilities.

Other Post-Employment Benefits are referred to as OPEB by actuaries and includes costs such as retiree health care, life insurance, Medicare Supplement Insurance and deferred compensation.

Nebraska and South Dakota didn’t have any unfunded liabilities.

Hawaii had the highest
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