The /*Pew Center on the States*/ surveyed state administered pension plans, retiree healthcare and other post-employment benefits in all 50 states, and found that in many cases, immediate action was needed to avoid even more debilitating costs.
Nationwide, the shortfall is said to be $1 trillion.
In California, the recommendations include raising the retirement age and eliminating automatic cost-of-living expenses. Without that, the state may have to boost taxes, which may be a bitter pill for taxpayers to swallow since many of them would not be receiving similar benefits when they retire.
The report says the state's main pension plan, /*California Public Employees' Retirement System*/ (CalPERS), is in relatively good shape.
According to the study, the state of Illinois faces the biggest challenge as it has the worst situation in the nation when it comes to state-funded pension plans.
