Worst Funded Pension Plans in America (2026)
Published March 28, 2026 · DOL Form 5500 / Public Plans Database
Some pension plans have less than 30 cents for every dollar they owe to retirees. These severely underfunded plans cover millions of workers and retirees whose retirement security is at risk. Here are the 25 worst-funded plans in America.
Bottom 25 by Funding Ratio
The Math of Underfunding
A plan with a 40% funding ratio and $10 billion in liabilities has only $4 billion in assets, a $6 billion gap. Closing that gap requires either massive increases in annual contributions (often from taxpayers for public plans), cutting future benefits, or achieving consistently above-average investment returns. None of these are easy.
Public vs. Private Plans
Public pension plans (for state and local government workers) tend to have lower average funding ratios than corporate plans because they use higher return assumptions and face less regulatory pressure to fund adequately. Corporate plans are subject to ERISA funding requirements and PBGC oversight, which creates stronger incentives to maintain funding levels.
For guidance on checking your own plan, see is my pension safe. For the broader context, see public pension crisis explained.
Frequently Asked Questions
Which pension plan is the worst funded?
Chicago Firefighters Annuity & Benefit Fund has the lowest funding ratio at 20%, meaning it has far less in assets than it owes in promised benefits.
Why are some pension plans so underfunded?
Common causes include: insufficient employer contributions over many years, overly optimistic investment return assumptions, benefit increases not matched by funding, market downturns (2008, 2020) reducing assets, and demographic shifts (longer lifespans, retiring baby boomers).
Can an underfunded pension plan be fixed?
Yes, but it requires sustained commitment. Solutions include increasing employer contributions, reducing future benefit accruals (not cutting existing benefits), lowering return assumptions to more realistic levels, and in some cases, government assistance (as with the Butch Lewis Act for multiemployer plans).
About This Data
Data from DOL Form 5500, PBGC, and the Boston College Center for Retirement Research Public Plans Database. See our methodology.