Wondering who the next big bailout beneficiaries will be?
U.S. states face a total shortfall of at least $1 trillion in their funds for employees’ pensions and retirement benefits, and their financial problems are quickly mounting, according to a report released by the Pew Center on the States on Thursday.
That figure is actually understated. And guess which Big Labor-dominated state is ailing the most?
Illinois is in the worst shape, with only 54 percent of its pension obligations funded, according to the report, which looked at fiscal year 2008.
Because the analysis did not encompass the final six months of calendar year 2008 — most states’ fiscal year’s end during the summer — it does not include the market downturn that devastated many funds’ investment portfolios.
“The funding gap will likely increase when the more than 25 percent loss states took in calendar year 2008 is factored in,” the report said.
Watch your wallets.