States’ Total Pension Funding Gap Reaches $1.3 Trillion – Governing

The pension funding shortfall increased almost 17 percentage points from the previous fiscal year, to nearly 66 percent of states’ own-source revenue. A state-by-state review of unfunded pension liabilities as of fiscal 2022 shows that Illinois’ unfunded pension liability was the largest of any state at 197.2 percent of its own-source revenue, followed by New Jersey (162.4 percent), Mississippi (149.5 percent), Connecticut (147.6 percent) and Kentucky (134.9 percent).