Most Underfunded Pension Plans in America

An underfunded pension plan has fewer assets than the present value of its accrued benefit obligations. Actuaries generally treat plans below 80% funded as underfunded, and below 60% as critically underfunded. The shortfall does not mean the plan is bankrupt — sponsors can close gaps over time through contributions and investment returns — but it does mean the plan is currently below the level needed to pay every promised benefit if all obligations came due today at the plan's assumed discount rate.

As of the most recent valuation cycle, Chicago Firefighters Annuity & Benefit Fund (sponsored by City of Chicago) reports the lowest funding ratio in this dataset at 19.5%. The plan covers 13,500 active and retired participants with an unfunded liability of $7.8B. Funding ratios shift each valuation cycle as discount rates, asset returns, and contribution policy change.

It depends on the plan type. Corporate single-employer plans are insured by the Pension Benefit Guaranty Corporation; if a plan terminates underfunded, PBGC pays guaranteed benefits up to the statutory annual maximum (which varies by retirement age). Multiemployer plans have PBGC insurance with a much lower per-participant guarantee. Public plans are not PBGC-insured but accrued benefits are typically protected by state constitutional or statutory clauses; the sponsor's taxing authority is the ultimate backstop. None of this is an investment recommendation — readers concerned about a specific plan should review their Annual Funding Notice and consult a fiduciary advisor.

Plans are ranked by funding ratio — assets divided by accrued liabilities — using the most recent available valuation. Of the 100 plans in this ranking, 28 report below the 60% critical threshold and 91 sit below the 80% actuarial benchmark. Combined unfunded liabilities total $1601.1B, covering 22,162,478 active and retired participants. Public plan ratios come from the Boston College Public Plans Database; corporate and multiemployer plan ratios come from DOL Form 5500 Schedule SB and Schedule MB filings.

Rankings refresh each time DOL EBSA publishes new Form 5500 filings (about a 9–12 month lag after plan year-end) and as the Public Plans Database releases its annual update. The current dataset reflects valuations available as of May 2026. Funding ratios reported here are not projections — they are the figures plan sponsors filed with regulators.