US States’ Pension Bill: $2.5 Trillion

Consider Pennsylvania: The Keystone State’s ongoing pension reform debate is a microcosm of the larger national pension problem. Today, the state faces a $47 billion unfunded pension liability—that’s $9,000 owed per household. And this debt tsunami is picking up speed; A 2010 law artificially caps pension contributions and hides stock market losses for a decade. By 2018, the state pension debt will rise to $65 billion, a staggering $13,000 owed by each Pennsylvania family.