By Thomson/Reuters – Re-Blogged From Newsmax
The funding deficit for U.S. state public pension systems rose to a record-high $1.4 trillion in fiscal 2016, a nearly $300 billion increase from fiscal 2015, according to a Pew Charitable Trusts report released on Thursday.
The public worker retirement funds reported only $2.6 trillion in assets to cover total pension liabilities of $4 trillion, with the report pegging the shortfall on investment returns falling short of assumptions and inadequate state contributions to pension systems, Pew reported.
Based on preliminary information, Pew said unfunded liabilities should decrease in 2017 due to stronger investment returns last year. It added that funds continue to allocate bigger shares of their assets to riskier investments such as equities, hedge funds, real estate and commodities that can produce higher returns.