NEW: RI Has Sixth Worst Unfunded Pension Liability

NEW: RI Has Sixth Worst Unfunded Pension Liability

Rhode Island’s pension system is barely more than half funded according to a new report issued this week by the Pew Center on the States.

The report finds that Rhode Island’s retirement system is 59 percent funded—ahead of five other states: Kentucky and New Hampshire tied at 58 percent; Oklahoma, 57 percent; and West Virginia at 56 percent.

Rhode Island’s retirement system had a total liability of about $11.5 billion. The funding ratios are based on data for fiscal year 2009—before the release of a new report earlier this month showing that Rhode Island’s unfunded liability was higher than expected, at about $6.8 billion.

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Other than New Hampshire, the next closest New England state was Connecticut, at 61 percent. Other states in the region did far better—Maine and Vermont both stood at 73 percent and Massachusetts was close at 68 percent.

Experts recommend that pension funds remain at least 80 percent funded.

Overall, the report found a $1.26 trillion gap between the promises the states have made to retirees and the money they have set aside to pay for them. The funding shortfall is a 26 percent increase over the previous year.

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