Special Report
How Montana's Pension Shortfall Compares to Other States
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In much of the country, public pension funding has been one of the most persistent public policy problems. For years, many state governments have failed to make necessary investments in their retirement system, resulting in funding gaps that increasingly present a looming reckoning for taxpayers.
Accordinââg to a recent report published by The Pew Charitable Trusts, a public policy think tank, many states are now taking earnest measures to reduce their pension funding gap. These measures include increased contributions, cost reduction strategies, and more sophisticated pension management tools. States have also benefited from once-in-a-generation investment returns following the COVID-19 market crash in March 2020.
Still, based on 2019 data, the most recent year of available comprehensive data, the majority of states have a funding shortfall of 25% or more.
Montana is one of 26 states to not have funding for over 25% of its pension obligations. Montana’s public pension fund has $11.9 billion in assets, well shy of its $16.4 billion in obligations — a 72.5% funding ratio.
Unlike many other states, Montana’s investments of pension assets are underperforming. The Montana Board of Investments reported a 28.1% net return in fiscal 2021 on its consolidated pension pool, below the 29.7% benchmark.
All pension funding data used in this story was compiled by The Pew Charitable Trusts and is for 2019. We also considered public-sector, state-level employment, both in raw numbers and as a share of overall employment, using data from the Bureau of Labor Statistics.
Rank | State | Pension funding ratio | Pension assets ($, billions) | Pension liabilities ($, billions) | State government employees |
---|---|---|---|---|---|
1 | Wisconsin | 103.0% | 112.1 | 108.9 | 89,800 |
2 | South Dakota | 100.1% | 12.5 | 12.5 | 17,300 |
3 | Tennessee | 98.2% | 41.1 | 41.8 | 95,500 |
4 | Washington | 96.3% | 100.9 | 104.8 | 142,700 |
5 | New York | 96.1% | 215.2 | 223.9 | 254,600 |
6 | Idaho | 94.6% | 17.7 | 18.8 | 30,100 |
7 | Nebraska | 93.1% | 15.2 | 16.3 | 42,500 |
8 | Utah | 91.7% | 35.2 | 38.4 | 81,200 |
9 | North Carolina | 88.4% | 101.4 | 114.6 | 196,100 |
10 | Iowa | 85.4% | 34.8 | 40.7 | 67,100 |
11 | Maine | 84.3% | 15.1 | 17.9 | 24,600 |
12 | Delaware | 83.4% | 10.2 | 12.2 | 32,200 |
13 | West Virginia | 83.4% | 15.9 | 19.1 | 46,900 |
14 | Minnesota | 82.2% | 70.8 | 86.1 | 98,900 |
15 | Oklahoma | 80.7% | 33.2 | 41.1 | 79,700 |
16 | Oregon | 80.2% | 70.2 | 87.5 | 41,300 |
17 | Arkansas | 80.0% | 28.6 | 35.7 | 76,200 |
18 | Ohio | 80.0% | 168.4 | 210.5 | 168,000 |
19 | Georgia | 78.7% | 95.6 | 121.6 | 162,500 |
20 | Florida | 78.2% | 163.9 | 209.5 | 246,400 |
21 | Missouri | 77.8% | 59.9 | 77.0 | 100,200 |
22 | Virginia | 77.2% | 79.8 | 103.3 | 157,300 |
23 | Nevada | 76.5% | 44.3 | 57.9 | 40,200 |
24 | Wyoming | 76.5% | 9.0 | 11.8 | 13,600 |
25 | Montana | 72.5% | 11.9 | 16.4 | 27,400 |
26 | California | 71.9% | 474.3 | 659.4 | 521,600 |
27 | Maryland | 71.6% | 54.3 | 75.8 | 108,100 |
28 | Kansas | 69.9% | 20.6 | 29.5 | 50,700 |
29 | North Dakota | 69.8% | 5.9 | 8.4 | 21,400 |
30 | Alabama | 69.4% | 38.5 | 55.5 | 117,000 |
31 | Texas | 69.0% | 186.8 | 270.7 | 426,400 |
32 | Indiana | 68.6% | 30.8 | 44.9 | 108,900 |
33 | Alaska | 67.4% | 15.2 | 22.6 | 22,500 |
34 | New Mexico | 67.3% | 29.2 | 43.4 | 53,700 |
35 | Louisiana | 66.9% | 36.8 | 54.9 | 86,800 |
36 | Colorado | 66.5% | 51.8 | 77.9 | 126,600 |
37 | New Hampshire | 65.5% | 9.2 | 14.1 | 22,400 |
38 | Arizona | 65.2% | 49.9 | 76.6 | 89,800 |
39 | Vermont | 63.7% | 4.5 | 7.1 | 17,800 |
40 | Mississippi | 61.7% | 28.6 | 46.4 | 57,400 |
41 | Michigan | 61.1% | 65.0 | 106.4 | 178,800 |
42 | Massachusetts | 59.4% | 58.3 | 98.1 | 122,600 |
43 | Pennsylvania | 58.0% | 89.8 | 154.8 | 148,600 |
44 | South Carolina | 55.4% | 32.3 | 58.3 | 103,500 |
45 | Hawaii | 54.9% | 17.2 | 31.4 | 67,000 |
46 | Rhode Island | 54.5% | 6.6 | 12.1 | 20,400 |
47 | Kentucky | 44.6% | 24.0 | 53.7 | 90,800 |
48 | Connecticut | 44.4% | 32.0 | 72.1 | 71,000 |
49 | New Jersey | 39.7% | 82.3 | 207.1 | 138,700 |
50 | Illinois | 38.9% | 92.6 | 237.9 | 147,000 |
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