From 2009 to 2012, North Carolina’s unfunded state pension liabilities skyrocketed by nearly 700%. That’s the findings of new data released by the Institute for Truth in Accounting’s State Data Lab project.
During the economic recovery that began in 2009, states had the opportunity to improve the condition of their pension funds by contributing money needed to be confident they could pay pensions promised to employees. Yet in 8 states the problem (called “unfunded liabilities”) got worse.
Between 2009 and 2012, California, Delaware, Michigan, Montana, Nebraska, North Carolina, Ohio and Pennsylvania, allowed their pension funds to deteriorate. Their pension funds required more dollars in 2012 than were needed in 2009 to fully support their promises. These states are taking on water in their own ships, despite warnings of potential problems paying pensions promised to future retirees.
North Carolina’s pension fared far worse than any other state during those years, with Nebraska’s roughly 250% increase coming in at second highest – a fraction of NC’s dramatic increase.
A major factor in this equation was the previous governor’s robbing the pension fund. It took a lawsuit to get the money back, but he gains that might have been during the good times will never be…
I am glad we have a Republican governor now. The Democrats were robbing us blind.