Rising U.S. State Unfunded Pension Liabilities Are Causing Budgetary Stress Feb 06

  • ID: 1806319
  • February 2006
  • Region: United States
  • Standard & Poors
1 of 3


  • Alabama
  • Florida
  • Kentucky
  • Missouri
  • North Carolina
  • State of Washington
  • MORE

U.S. state budgetary stress continues to rise due to increasing pension fund contribution demands at a time when costs are also escalating in other areas, such as education and Medicaid. Higher pension liabilities are pressuring the creditworthiness of these states despite their overall strong revenue performance. One measure of the health of a pension fund is the funded ratio, which for state pension funds has fallen dramatically since 2000. If pension investment return assumptions are met over the near-term, funded ratios may begin to stabilize or improve in fiscal 2006 and beyond. The risks to such a scenario, in addition to the potential for investment return shortfalls, include a number of factors that affect funding, such as changes in actuarial...

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

Note: Product cover images may vary from those shown
2 of 3

- Virginia
- Utah
- Texas
- Tennessee
- South Carolina
- Rhode Island & Providence Plantations
- Pennsylvania
- Oregon
- Oklahoma
- Ohio
- North Carolina
- New York State
- New Mexico
- New Jersey
- Nevada
- Montana
- Missouri
- Mississippi
- Minnesota
- Michigan
- Massachusetts
- Maryland
- Maine
- Louisiana
- Kentucky
- Illinois
- Idaho
- Hawaii
- Georgia
- Florida
- Colorado
- California
- Alaska
- Alabama
- Arizona
- Arkansas
- Indiana
- Iowa
- Kansas
- Nebraska
- New Hampshire
- North Dakota
- South Dakota
- Vermont
- State of Washington
- West Virginia
- Wisconsin
- Wyoming
- Delaware
- Connecticut

Note: Product cover images may vary from those shown
3 of 3
Note: Product cover images may vary from those shown




Our Clients

  • Fluidigm Corporation
  • Apple, Inc.
  • CEVA Santé Animale
  • Abbott Laboratories Ltd.
  • Merck Group
  • Allergan Inc.
  • Pfizer Inc.