UNDERFUNDED / OVER-GENEROUS PUBLIC PENSION UPDATE: States face $1.26 trillion shortfall in funds to pay retiree benefits. “The study, to be released Tuesday by the Pew Center on the States, found that the pension and health-care funding gap increased by 26 percent over the previous year. Pew officials said the growing shortfall was driven by inadequate state contributions, an aging population and market losses that accompanied the recession.”

UPDATE: Public Pensions, Once Off Limits, Face Budget Cuts.