US - The unfunded liability of the Teachers' Pension and Annuity Fund in New Jersey (TPAF) has increased by £3bn to $15.09bn as of June 30 2008, according to its annual valuation report.
The $15.09bn figure shows the difference between the actuarial value of the assets at $36.6bn and the accrued liability of $51.7bn, as of June 30 2008. The funded ratio is at 70.8%.
However, the TPAF had an unfunded liability of $12.4bn and a funded ratio of 74.7% as of June 30 2007.
State Treasurer David Rousseau commented: "The actuary's report underscores the serious problems facing defined benefit programs across the country for both public and private retirement systems."
He pointed out that a state retirement funding report recently published by Wilshire Consulting highlighted that 59 other state retirement systems reporting actuarial data over 2008 also experienced significantly reduced funding ratios.
He added: "While the updated figures are a graphic reminder of the sizeable challenge of meeting funding obligations for retired workers, that challenge would be all the more daunting had we not shored up the system through funding policies and reforms."
The report shows continued erosion in the funded status of the plan, which covers around 75,000 retirees and beneficiaries, as well as more than 156,000 active members of the TPAF system.
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