New Mexico Pension System Faces Multi-billion $$$ Shortfall

New Mexico is just one of dozens of states nationwide with massively funded state pension systems. According to this article, “by 2020, coverage will no longer be considered solvent.” Also, “the authority has an unfunded liability of about $4.1 billion but that has dropped from about $5 billion.” This improvement is the result of rate increases in recent years.
Surprisingly, despite the massive shortfall, New Mexico is actually in relatively good shape, at least according to this analysis.
There seems to be several major problems here:
1) Politicians have an incentive to over-promise what they pay state workers in the future relative to what they are paid right away. This is a means of cost-shifting onto future politicians and generations;
2) The inevitable tax increases hurt taxpayers even though they are largely unaware of the future massive burden they will be faced with;
3) From a pensioners standpoint, it is tough to be on a fixed income when fees and rates keep rising.
The single most important solution to this problem is to move away from defined benefit pension plans and give employees greater control over and responsibility for their own retirements.