The government’s $10 trillion in unfunded pension liabilities are already staggering.
That number is set to increase to $15 trillion over the next decade, according to the nonpartisan Congressional Budget Office.
That’s more than double the current unfundable amount of $7 trillion.
The pension fund for state and local governments in New York, for instance, has $2.3 trillion in assets under management.
The largest pension fund in the state, the New York City Teachers Retirement System, has an estimated $5.3 billion in assets, according the State of New York’s Retirement Board.
The state’s other two pension funds — the New Jersey and New York State Retirement Funds — have assets of $3.9 billion and $4.2 billion, respectively.
But those funds are also grappling with a backlog of more than $1.7 trillion, which they have not yet been able to service.
The state’s biggest state employee pension fund, the Teachers Retirement Systems of New Jersey, has assets of nearly $5 billion, according a spokesperson.
The average state employee receives $8,735 a year in retirement benefits, according New York Governor Andrew Cuomo.
But if New York does not reform its pension system in the next several years, the average worker will receive only $872 in pension benefits by 2026.
And if that’s not enough to push the state into the red, New York will lose millions in federal funding.
The Pension Benefit Guaranty Corp., which provides federal matching funds, will cut a $20 billion portion of the state’s unfundered pension liabilities, according its latest assessment.
The federal government has already committed more than a half-billion dollars to the state to help with the pension shortfall.