Pension funds underfunded by $16B

Pension funds underfunded by $16B Click to Enlarge Photo:

Jan 20, 2013 at 12:46 pm

ST. PAUL, Minn. (KNSI) Public pension plans for Minnesota government employees are underfunded by more than $16 billion — a deficit that's $4 billion larger than it was when lawmakers tried to shore up the problem in 2010.

Experts say the underfunded pension is not reason for alarm, but it's a problem that 11 of the state's 12 public pension plans open to new members don't have enough money coming in to pay out promised benefits.

Plans for state troopers, public safety workers, and local police and firefighters are among those with the largest gap. Lawmakers will consider changes to those plans this year.

The plans pay for retirement for more than 729,000 current and retired state and local government workers.

The Legislative Commission on Pensions and Retirement released the numbers last month.

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