While some states are taking adequate steps to address the cost of retiree health-care benefits, others including New Jersey, New York, California and North Carolina are facing tens of billions of dollars in so-called "unfunded liabilities." The myths and realities of this potential crisis are laid out in a new issue brief written by Dr. Robert Clark, a professor of economics and of management, innovation and entrepreneurship at North Carolina State University, and released by the Center for State and Local Government Excellence.
The paper, The Crisis in State and Local Government Retiree Health Benefit Plans: Myths and Realities, examines the current financial status of state retiree health plans from around the country. States with the lowest unfunded liabilities include North Dakota, Wyoming, Iowa and Oregon.
The brief finds that: