"The gap between what states owe their retirees and what they've set aside to pay them [in combined pension and health benefits] has grown to at least $1.38 trillion, according to the latest study from the Pew Center on the States. The report, based on data from the 2010 fiscal year, shows the gap is up about 9 percent compared to FY 2009 data and up 38 percent compared to data from FY 2008.... The report finds that state pension plans have $2.31 trillion set aside to cover $3.07 trillion in obligations, leaving a gap of about $757 billion. States have set aside only about 5 percent of the $660 billion in non-pension benefits -- namely retiree health care -- leaving a $627 billion gap in that pool."  MORE >>