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Currently, state and local pension contributions equal 3.8 percent of total budgets. To get back on a path to full funding, sponsors will need to contribute:

• 5.0 percent of budgets if liabilities are discounted by 8 percent; or
• 9.1 percent of budgets if liabilities are discounted at 5 percent.

But states with seriously underfunded plans and/or generous benefits – like CA, IL, and NJ – will need to contribute significantly more.