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Alabama Pension Funding |
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State pension systems have received more attention since the financial crisis of 2008 as their investments suffered while costs for benefits have been increasing. The Pew Center for the States has released an updated report this week estimating the 2010 pension liabilities for each state. The study indicates that shortfalls in states' retirement systems have grown to $1.38 trillion. It also provides a state-by-state analysis which shows specific pension funding issues by state.
In an effort to reform Alabama's pension system, the state legislature increased the retirement age from 62 to 65 in 2011, along with increased employee contributions. Although it paid 100 percent of Pew's recommended contribution in 2010, Alabama remains one of 34 states that were less than 80 percent funded. Thirty-two of those 34 states were judged to be in the "serious concerns" group, while another 11 states were rated as solid performers. Only one state, Wisconsin, provided state pensions that were 100 percent funded. According to Pew, the State of Alabama had a pension liability of $58.7 billion in 2010, and was $28 billion short, funding 70 percent of its liability.
For retiree health care, Pew estimated that Alabama funded 39 percent of its recommended contribution for health care in 2011, but has matched only 5 percent of its total liability of $15.7 billion. For additional details and a state-by-state analysis, click here.
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PARCA News & Updates |
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Kaiser Family Foundation has compiled information on the status on states' actions towards creating health insurance exchanges. The state-by-state data can be found here.
PARCA's work with school systems around the state provides data which will allow those systems to analyze their performance and focus on areas for improvement. Some of our research has been cited in the articles below.
Birmingham schools' finance reform hampered by bloated central office
Stats review mixed bag for city schools
Magnet high school could combat dropout rate
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PARCA Friends on the Move |
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- Dean of the Cumberland School of Law and PARCA Board member John L. Carroll announced he will step down from his role as Dean and return to teaching next summer. To read more about Carroll's announcement, click here.
- Samford University President and PARCA Board member Andrew Westmoreland has been elected Chairman of the Council of Presidents for the Southern Conference for 2012-2013. Click here for more information.
- PARCA Roundtable member Daren Freeman is the new Assistant Controller at construction and engineering company Robins & Morton.
- Birmingham-based Standard Furniture, led by PARCA Roundtable member Jacob Shevin, celebrates its 100th anniversary. Click here to find more information.
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