State pensions have $479.6 billion of liabilities not covered by assets, according to data compiled by Bloomberg from the latest available filings. The assets covered an average of about 77% of liabilities, less than the 80% actuaries consider adequate.
Illinois is the worst-funded system, according to data compiled by Bloomberg in September, with assets to cover 50.6% of liabilities. In that state, 2,600 employees are expected to retire in 2011, up 27% from two years ago, because of legislative proposals to cut their benefits, said Tim Blair, executive secretary of the State Retirement Systems.
"We're going to see over the next several years more people retiring at any given age," he said in a telephone interview. It's going to be "a steady stream of folks going out the door."