A new report by Pew Center on the States and the Laura and John Arnold Foundation says the retirement plans have a $13 billion shortfall. That’s up from $12 billion a year earlier.
Factors cited include a lower than projected return on investments.
The report says the plans are now funded cumulatively at 73.2 percent, while industry standards say that a fund is considered healthy at 80 percent or above.
State Treasurer Doug Ducey says changes made in 2005 and 2010 help but don’t solve the retirement plans’ funding problem.
He says changes must be made so the retirement plans can pay those who earned benefits.