"States continue to lose ground in their efforts to cover the long-term costs of their employees' pensions and retiree health care.... [S]tate pension plans represented more than half of [the $1.38 trillion] shortfall, with $2.31 trillion set aside to cover $3.07 trillion in long-term liabilities -- leaving about a $757 billion gap. Retiree health care and other non-pension benefits accounted for the remaining $627 billion. States have amassed $660 billion in non-pension liabilities but saved just $33.1 billion to pay for them -- slightly less than 5 percent of the total cost.... Over the last three years, the majority of states put reforms in place to better manage their retirement bills, but there is more work to be done to get back on solid fiscal footing."

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