Alabama's Pension Crisis: A Growing Burden

0:00Reporting from The Daily News Now, I'm Corey with The Story, with the latest in Birmingham, Alabama's public pension systems are dealing with a massive shortfall. Unfunded liabilities have ballooned to more than $24 billion, up from roughly $14 billion, $400 million, just 10. Years ago, lawmakers passed reforms back in 2011 and 2012, but the gap between assets and future payouts keeps growing. Even with rising contributions in solid market gains, the debt compounds year after year. Experts warned this stems from inadequate funding. Alabama ranks 44th out of states, and employer contribution rates needed to close the gap over 20 years. The state's rate is only 13 percent of payroll, far below the national average of 21.6 percent. That shortfall hits taxpayers hard, driving up future costs. Lowering overly optimistic assumed investment returns with the man more upfront cash, but give a true cost picture and curb endless growth. Policy makers need fresh reforms to tackle these rude issues.

1:03Without action, the pension burden will keep mounting on state budgets and residents alike. The Daily News Now is presented by our sponsor. Relax Deeper, Reset Faster, Comfort You Can Hear, S-O-L-I-SoliPillow.com