Beware: Unfunded Retirement Benefits Reaches $1.14 Trillion, NJ, Calif., NY In Danger Zone

New Jersey, California, New York, Texas and Illinois face a hundred billion plus deficit when it comes to paying for the benefits other than pensions promised to state retirees.

The State of New Jersey’s unfunded liability for post-retirement benefits other than pensions in state health care plans reached $174.9 billion in 2022. That was the highest in the country, according to a report by the American Legislative Exchange Council. The report stated the nationwide costs of state-sponsored post-retirement benefits reached $1.14 trillion in 2022.

California ($140.2 billion), New York ($133.2 billion), Texas ($120.2 billion) and Illinois ($103.1 billion) rounded out the top five states with the highest liabilities.