Staggering Chart Shows Your Personal Share Of Your State's Underfunded Pension

Tyler Durden's picture

Back in March we shared the staggering results of a Bankrate survey which found that the average American household couldn't afford to write a measly $500 check in the event of an unexpected emergency (see: "The Reality Is, Half Of Americans Can’t Afford To Write A $500 Check").  Of course, as we note frequently, while the talking heads of daytime financial TV shows love to reference surging economic indicators like unemployment figures, the fact is that the number of Americans not participating in the work force remains near all-time highs and wage growth, despite "full employment" levels, has been practically non-existent since the great recession. 

Given the above, we can only presume that the average person in New Jersey, Connecticut, Illinois, Kentucky, etc. is going to have a somewhat difficult time producing their $10,000 - $27,000 share of their state's massive pension and debt obligations. 

As CNBC points out today via S&P Global Ratings, decades of budget mismanagement and hollow pension promises to public employees has resulted in a mountain of debt that many states are unlikely to ever repay.

New Jersey has set aside just 31 percent of what it needs to pay pensions costs. Kentucky, (31 percent) Illinois (36 percent) Connecticut (41 percent) and Hawaii (541 percent) are the worst off.

 

States with the best funding levels include Wisconsin (98 percent), South Dakota (97 percent), New York (93 percent), Tennessee (88 percent) and North Carolina (87 percent).

 

In New Jersey, the funding gap represents nearly 42 percent of the Garden State's Gross State Product – or more than $27,000 for every resident, according to S&P Global Ratings.

 

Other underfunded states include Connecticut ($22,700 per person), Hawaii ($15,700), Illinois ($15,900) and Alaska ($18,200).

 

That compares with Nebraska, where the underfunding represents just $242 for every resident. Taxpayers in South Dakota ($598 per person), Idaho ($472), Iowa ($752), and Tennessee ($806) also face relatively low risk of having to make up for unfunded state liabilities.

Pension

Of course, we can't help but notice that 8 of the 10 worst funded states in America just happen to be "deep blue" bastions of liberalism.  Could it be that perpetually higher taxes and overly burdensome regulations end up being negative for state budgets in the long term?

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D Nyle's picture

Good thing Social Security will be there to help, Ha Ha Ha Ha

stacking12321's picture

i currently live in california.

my share of the underfunded government pension plan, is zero.

i did not agree to pay any of the odious debt created by the thugs in sacramento.

i wlil not pay.

Vlad the Inhaler's picture

LOL you will pay when they inflate the living fuck out of the dollar.

Bes's picture

dismantle the MIC

and this shit is paid for. 

destroy the oligopoly

and this shit is paid for.

done.  

anarchitect's picture

Dismantling the MIC would help, but federal commitments (SS, Medicare...) dominate the budget and the debt.  It would also be interesting to see what the federal per capita obligation is.  Some cities (e.g. Chicago, Dallas) also have significant unfunded obligations, and it would be interesting to see those.

No Time for Fishing's picture

Something tells me the joke is on Nebraska and they will pay their equal share of these other states irresponsible behavior as all these debts get nationalized. 

bluez's picture

Every damn week the company took this whopping "Federal Insurance Contributions Act" (FICA) tax bite out of my meager paycheck, which would barely pay off the mechanic so I could get to the shitty "job" in the first fucking place (between breakdowns). Now that I am too fucking decrepit to stick a broken beer bottle up their ass they are calling it an "entitlement". But... They promised...

They are real talented at this "promising" act. Very slick indeed.

Arnold's picture

Tell it to the Steward.

Thethingreenline's picture

SS ‘shortfall’ is another BS scam to divide and divert funds from those who payed to those who steal. The money is there just fine, they want you to believe it’s not, so they can steal the trust fund. Same playbook HRC uses with the Russian thing, accuse others of the exact thing you do, hoping in the confusion all will forget. TTGL worked two jobs slinging shit so he could get SS in addition,and will get it.

TTGL

Hero's Edge's picture

Is anyone paying a pension?  Bueller?

SilverRhino's picture

South Dakota,   no income tax and near the bottom of this chart.   

The winters SUCK.  

I'll adapt.  White people thrive in the cold. 

 

spag's picture

people gotta stop banging on about these unfunded entitlements. at the end of the day, they wont be paid.

what will the old farts do? attack the robocops with their zimmer frames?

2_legs_bahhhhhd's picture

The difference is that the old farts paid for these non existent "benefits" thru a lifetime of payroll deductions and insurance premiums, and a shit ton of other fees and taxes.

Get it straight, benefits are something that you've contributed too, and payed for.....entitlements are what lazy fuckers expect because someone else is paying.

GoyimUprising's picture

So, you threw your money down a hole all of your life and now you're pissed, because you threw your money down a hole all of your life?  And, you somehow expect me to care?

2_legs_bahhhhhd's picture

If you call taxation by force throwing your money down a hole, I would agree. Try it for 40 years and let me know how you feel....k? Do I expect you to care? I don't need your help, I made my own plans.

Inzidious's picture

Maybe you should have done something about it back then? Instead of just believing what they sold you? I get that you paid into it, and I understand where you're coming from - but I will not pay for mistakes made by someone else, you or the politicians controlling you. I will leave the country/become a criminal and would even go to jail before I ever became a taxpaying wage slave ever again.

2_legs_bahhhhhd's picture

i did, I made sure my life's work was outside of their control system the best I could. I made my own pension fund, and funded it with my own savings and investments. I don't want to pay for anyone else, anymore than I expect them to support me. I'm a little long in the tooth to be contemplating taking on the establishment...how bout they just leave me the fuck alone? Bring in some new blood to feed on. I don't blame you for not wanting to pay, it's all fuckng pointless at this juncture. But your choice is to pay or run.....good luck

MisterMousePotato's picture

"The difference is that the old farts paid for these non existent 'benefits' thru a lifetime of payroll deductions and insurance premiums, and a shit ton of other fees and taxes.

Get it straight, benefits are something that you've contributed too, and payed for."

Because this is a thread about government employee pensions, I am not certain if you are talking about those in the private sector, or those in the public sector.

If by "old farts," you intend to refer to government employees, then you are repeating the Grand Illusion. The Great Lie. Viz., that government employees pay taxes, for example, just like everyone else.

This is false. Government employees - teachers, for example - pay no taxes whatsoever. None at all. As in zero. From the minute they are hired to the minute that they die, they pay no taxes.

They are not like the rest of us.

Why do you think that every single time without fail, when a proposal is made to jack up taxes, the teachers (every single one), and their unions, and their hangers on, are all out there on street corners passing out the "It's for the chiiiiiildren" propaganda?

spag's picture

and?.... all you really said is that they fucked you over by selling you a scheme they cant afford to pay

2_legs_bahhhhhd's picture

Holy fuck! Thanks captain obvious! Where were you 40 years ago when I figured it out.

canisdirus's picture

Pensions aren't "benefits", they're entitlements that were negotiated for. Most of these people didn't even contribute more than a tiny fraction (if anything) of the entitlements they were expecting to receive. They even got a break on paying into social security from this, meaning they made that much more over their working lives than the poor working stiffs without them.

Good luck getting anyone to feel bad for these leeches.

2_legs_bahhhhhd's picture

I never have paid into a pension fund, or a trade union. I made my own money and payed my own way. And yes paid benefits are/were part of a negotiated employment contract. they were very common at one time in private companies, until big business and unions learned how to fuck them out of it. The public entitlement funds are egregious frauds on the back of the taxpayer, and I will celebrate the day they collapse.

yellowsub's picture

Hope you got a case of bubbly ready to pop.

bonin006's picture

If everyone started putting "entitlements" in quotes it would help with understanding.

Ben Tornilloed's picture

That's the point dumbfuck.  You DIDN'T contribute enough.  You DIDN'T pay for your expected "benefits".  YOU were lied to.

2_legs_bahhhhhd's picture

And what have you contributed dumbfuck?

My turn is over bitch, now get to fuckin work. If you pay half of what I did in your lifetime, consider yourself fortunate you only got semi fucked.

I see your reading comprehension is wanting. I overpayed into a system that had no intention of making good, I figured it out 40 years ago and planned accordingly. Now hold this for the next 40 years pussy (red hot anvil)

Bwana's picture

I'm an old fart and I'm getting painted into a corner. I have paid in for 56 years and the various levels of government call my union pension and social security an entitlement. I could afford to retire now but it would be a temporary situation because of the 400% inflation Obama set up and the Fed is now going to implement. As long as the government can print worthless money retirement is impossible. What good will a retirement of 60K annually do if in four years it will have the buying power of 15K. The property tax on my home has increased at about 10% compounded annually so prior to retirement I need to sell my home because the property taxes will take it from me after I retire. I have savings but I'm sure sooner or later the government will give everyone a 50% "haircut" and that on top of the scheduled inflation will bury me financially. The only sure plan to stay off the streets after retirement is to get a secret stash of bricks to throw through the windows at the police department. Because of my age I will get put in a minimum security prison with non violent criminals and get 3 meals a day, a place to sleep, free medical care and dental care. In short everything I have worked for but I have to be in prison to get it.

Boonster's picture

You could live like a King in SE Asia and get some young stuff to boot. Problem solved.

Arnold's picture

Empty wine bottles, gasoline, rag, and overwhelming numbers.

HRClinton's picture

"White people thrive in the cold."

In the long run, everyone turns white. Bone white.

libertyanyday's picture

there is NOTHING to see, ............

No Time for Fishing's picture

We need a Consitutional Amendment that says NJ can't dump any of this debt on the rest of the country in any form or fashion. Not a penny not a dime!

skunzie's picture

The bottom 10 states should be acting quickly to shore up those pension debts while they can.  Bring the balances to zero and make themselves more attractive places in which to do business in the near term future.

No Time for Fishing's picture

The top half of the list is going to get the bottom half to pay by nationalizing their pension shortfalls.

Irvingm's picture

This is all coming crashing down when it is least expected.

Publicus_Reanimated's picture

Not 8 ot 10, 10 of 10.  West Va. and Kentucky only recently turned red.  The blues did it years ago.

Déjà view's picture

Look yonder...

Debt is also growing rapidly among the state’s 81 retirement systems for local-government workers. Not only are these systems poorly funded; it isn’t even clear how much some owe, since they haven’t disclosed the financial information necessary to verify their financial position, even to state oversight officials. After an extensive survey of municipal pension systems, Combs determined that none of the local plans was fully funded and that only 19 percent had 80 percent of the funds on hand to meet future obligations. 
http://www.city-journal.org/html/deep-debt-texas-13556.html

West Virginia paid the most generous benefits, equal to 115% of final earnings, followed by New Mexico (113%), Oregon (105%), California(102%) and, yes, conservative Texas (101%).
http://www.aei.org/publication/which-states-pay-the-most-generous-public...

GoyimUprising's picture

LOL.  I don't owe anything.  Fuck off and die.

spag's picture

at the end of the day the sooner people stop thinking in terms of left and right and start thinking in terms of 1%er vs everyone else the sooner things will be fixed.

lets face it, the democrates are cunts, the republicans are cunts, clinton is  a cunt, obama is a cunt, trump is a cunt.

until the libtards and trumptards and all the other retards stop jerking off amongst themselves they deserve all the buggery being dished out by the 1%ers

DoctorFix's picture

Correct. It never was Left vs. Right.  Its always been Us vs. Them.

libertyanyday's picture

Haves and HaveNots......like france , we are almost too top heavy, it will self correct

nucculturalmarxists's picture

Spag

1-The 1 %ers have money, access to cheap credit and leverage, and insider knowledge of what DC and Wall Street are going to do and have taken almost all the wealth gains since 2009.

2-What about the government employees? They can't be fired, retire at 55, are paid their inflation indexed salary for life. While working they underfunded their pensions yet get implied 9% per year return without any market or economy worries, and get paid healthcare plans? They are relatively "rich'"

3-Wheras a self employed or private sector chump has to fight every day for survival, from taxes, competition, and somehow save some money. Lifetime, their compensation is a third that of group 2. When retired he/she is subject to market whims, inflation, more taxes, fear of running out of money.

4-Then there is the welfare class who pay no taxes, enjoy other people's medicare money now shifted to obamacare, and a multitude of other freebies and "no personal responsibility status', as well as the funded threat to cause mayhem if they don't get what they want."

Groups 1, 2, 4 are on the same political, voting team to preserve the status quo. They are all cheating and dishonest but have a symbiotic relationship. 

It is group 3 "the Middle Class", that is screwed and powerless. Trump to the rescue??-not. When the world throws off the yoke of king petro-dollar and american arrogance, civil strife will erupt overnight. Group 1 will go to their hidden money and power. The marxist-bolshevik structure that is well established in academia, media, and funded by the likes of soros and many 1% ers, will support and unite groups 2 and 4. The middle class will be accused of multiple thought crimes, stripped of possessions and sent to the new gulag.

 

nucculturalmarxists's picture

Spag

1-The 1 %ers have money, access to cheap credit and leverage, and insider knowledge of what DC and Wall Street are going to do and have taken almost all the wealth gains since 2009.

2-What about the government employees? They can't be fired, retire at 55, are paid their inflation indexed salary for life. While working they underfunded their pensions yet get implied 9% per year return without any market or economy worries, and get paid healthcare plans? They are relatively "rich'"

3-Wheras a self employed or private sector chump has to fight every day for survival, from taxes, competition, and somehow save some money. Lifetime, their compensation is a third that of group 2. When retired he/she is subject to market whims, inflation, more taxes, fear of running out of money.

4-Then there is the welfare class who pay no taxes, enjoy other people's medicare money now shifted to obamacare, and a multitude of other freebies and "no personal responsibility status', as well as the funded threat to cause mayhem if they don't get what they want."

Groups 1, 2, 4 are on the same political, voting team to preserve the status quo. They are all cheating and dishonest but have a symbiotic relationship. 

It is group 3 "the Middle Class", that is screwed and powerless. Trump to the rescue??-not. When the world throws off the yoke of king petro-dollar and american arrogance, civil strife will erupt overnight. Group 1 will go to their hidden money and power. The marxist-bolshevik structure that is well established in academia, media, and funded by the likes of soros and many 1% ers, will support and unite groups 2 and 4. The middle class will be accused of multiple thought crimes, stripped of possessions and sent to the new gulag.

 

SmittyinLA's picture

You have to double California because half the state can't and won't pay their fair share

konadog's picture

The central banks might have finally dug their own graves by forcing interest rates to zero. That crushed the pensions. Now they can either bankrupt the insurance companies and pension funds or force the Treasury to default on its debt. This one is going to be interesting. My gold and silver are watching from the sidelines.

Ol' Painless's picture

Is it more likely the owners of the central banks were too short sighted to see the folly in ZIRP, or is it more likely they knew ZIRP would annihilate their only true potential enemy, the middle class?