WASHINGTON, Feb 16, 2009 (UPI via COMTEX) -- A study of recent data found state
and local U.S. governments are looking at more than $1 trillion in unfunded
retirement benefits
Cities, public schools and other local authorities are facing a shortfall of
$500 billion, while state governments have $445 billion in unfunded medical
benefits for retirees on their books, USA Today reported Monday.
On top of that, the federal government has $1.2 trillion in unfunded obligations
for medical benefits for retired workers. As baby boomers age, Medicare and
Social Security push the total of "unfunded promises" to $50 trillion, the
newspaper said.
States and larger cities were mandated to report the total of benefits obligated
to retirees for the first time last year. The figures come from a USA Today
review of the data.
Many governments have the authority to cut benefits, the newspaper said. Others,
such as Alaska, Minnesota, Pennsylvania and Utah, have begun setting money aside
to cover future medical costs, the newspaper said.
URL: www.upi.com
Copyright 2009 by United Press International