State pension plans lost $122 billion in assets due to the sharp market decline of the past year, depleting their assets-to-liabilities ratio by 9%, according to a report by
The financial outlook for underfunded systems has also declined. In 2001, pension plans total underfunded liabilities ballooned to $94 billion from $50 billion the year before.
For the first half of this year, Wilshire predicts a 10%-15% decline in funding ratios and a 52%-75% increase in underfunded state pension plans.