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The other debt bomb in public employee benefits Underfunded public-pensions have been in the spotlight in recent years, but another dire situation has not been received as much notice: health care obligations for public retirees. The U.S. may have nearly $1 trillion in unfunded health-care liabilities, according to a study by the National Bureau of Economic Research. Only 11 states have provided more than 10% of retiree health-care liabilities based on a November 2013 report from Standard & Poor’s. Meanwhile, only eight out of the 30 biggest cities have funded more than 5% of their obligations for retiree health-care costs, with New York City leading urban centers with unfunded liabilities at $22,857 per household, according to a study by the Pew Charitable Trust.  --The Wall Street Journal

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