Missouri treasurer Eric Schmitt says pensions are underfunded

Missouri Treasurer Eric Schmitt says the state employee retirement plan is underfunded by more than $5 billion.

Schmitt warned a panel of lawmakers on Wednesday that action is needed to prevent a hit on the state’s credit rating and finances.

Schmitt claims the pension plan in 60 percent funded, while 80 percent funding is considered healthy.

The treasurer blames past administrations of having unrealistically high expectations of investment earnings for billions of dollars in unfunded liabilities.

Schmitt also said Missouri has been paying expensive investment fees.

Schmitt wants to lower investment fees and lower expectations about investment earnings in the future.