Underfunded state pensions may face a bigger hit if new rules limit the ability to assume high rates of return. Pensions already face a $1 trillion hole, but the valuation used could understate the unfunded liability. North Carolina is among a number of states looking at ways to reform state employee pensions.
Private sector employees generally have defined contribution retirement plans, like a 401(k) or IRA. They are also the large majority of taxpayers who cover the one-way-bet for state employees.
