State Faces $60B Retiree Funding Gap

While there’s a lot of debate, some worthwhile and some not, about flashier subjects, a serious problem remains for North Carolina’s fiscal health: funding for state retirees’ health and pension plans. Fortunately, a few state officials are vowing to tackle it.

Over at NC Capitol Connection, “What Matters in North Carolina” podcast host Mark Shiver writes about the efforts of State Treasurer Dale Folwell and state Sen. Andy Wells to address a $60 billion gap in funding for state retirees — both for their health care and retirement plans.

Let’s put that in perspective, in a rough way. The state’s general fund is expected to see about $23 billion in revenue in the fiscal year 2017-2018.

So imagine having an income of, say, $69,000 a year. So a similar gap would result in your needing an extra $180,000 for your retirement funds. It would take some work to scrape up that cash, wouldn’t it?

That’s an important job for state government in years to come, though it may not get the headlines it deserves.