PERS has to project into the future so the unfunded liablity would be if every State employee worked 30 years and collected a pension, there may be a problem. It's like buying a new house and you put 10 percent down, you can still make the payments easily but your bank account would have to funded to be able to pay the house off in full. Only 10 percent retire, PERS still has to fund as all of them make a 30 year career, that's were the unfunded liability comes from, it's not really there.