Bangkok--4 Jun--Standard & Poor's
U.S. states have combined other postemployment benefit (OPEB) liabilities of more than $400 billion, research by Standard & Poor's Ratings Services shows. While some states have developed strategies to begin to manage these long-term funding requirements, Standard & Poor's believes that the current economic downturn could affect budget performance for years, which in turn could impede OPEB funding progress, according to a report, "U.S. States' OPEB Liabilities And Funding Strategies Vary Widely," published today.
"In addition to the difficult budget decisions most states face, we expect that poor investment performance in 2008 will have an adverse effect on state pension funds, which will require additional annual contributions to compensate for those losses," said credit analyst Robin Prunty.
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Media Contact:
Ana Sandoval, New York (1) 212- 438-5095, [email protected]
Analyst Contacts:
Robin Prunty, New York (1) 212-438-2081