Will the states ever get their accounting right?

September 20, 2015

States project how well their investments will do in order to determine how much they will fund their employee benefit contributions. Using the unfunded retirement debt calculated by the states, TIA researchers found states have accumulated pension and OPEB liabilities totaling nearly $1.2 trillion. Only $229 billion, or 19%, of these liabilities are currently reported on state balance sheets.

With the new accounting standard, GASB 68, the pension liabilities will be reported on state balance sheets. This is a step in the right direction.

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