Top 5 in 2016: Public Pensions Remain a Priority

Public Pensions Remain a Priority: Public pensions will continue to be a major area of concern for many states as accounting requirements and the financial assumptions used to calculate how much a state must pay into their systems transition. State-run retirement systems had a $968 billion shortfall in 2013, but recent strong investment returns, new accounting standards and state reforms have led to a reduction in unfunded liability for a majority of states. However, shortfalls are expected to remain between $800 and $900 billion in 2016, which means pensions will remain a big fiscal concern for state leaders in the coming year.