(Reason) The nation’s public pension systems had $1.59 trillion in total unfunded liabilities at the end of 2023

Public pension systems in the U.S. have seen a significant increase in unfunded liabilities, particularly during the Great Recession. Between 2007 and 2010, unfunded liabilities grew by over $1.11 trillion—a 632% increase—reflecting the financial challenges faced during that period. Despite some improvements in funding ratios over the last decade, these liabilities have continued to rise, underscoring ongoing financial pressures.

As of the end of the 2023 fiscal year for each public pension system, total unfunded public pension liabilities (UAL) reached $1.59 trillion, with state pension plans carrying the majority of the debt.

The median funded ratio of public pension plans stood at 76% at the end of 2023, but stress tests suggest that another economic downturn could significantly increase unfunded liabilities, potentially raising the total to $2.71 trillion by 2025.

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At the end of the 2023 fiscal year, the nation's public pension systems had $1.59 trillion in total unfunded liabilities.https://t.co/msg89p70Mr

— Pension Integrity Project (@ReasonPensions) October 3, 2024