In 2015, Michigan’s pension unfunded liability per capita was over 35 percent higher than the “Top Ten” average and seven percent lower than the peer state average.
What It Is: State government pension benefit unfunded actuarial accrued liability (UAAL) divided by population.
Why It Matters: This measure indicates the burden of unfunded retiree benefits on taxpayers. Payments for high unfunded liabilities may crowd out spending for competing needs, such as infrastructure and education.
Note: Unfunded liabilities are measured in UAAL, or unfunded actuarial accrued liabilities.