States, localities face $2 trillion unfunded pension costs Mon Jul 2, 2012 3:50pm EDT (Reuters) - States and localities have run up more than $2 trillion of unfunded pension liabilities, Moody's Investors Service said on Monday, after collecting the data on plans offered by 8,500 local governments and over 14,000 individual entities. The Wall Street credit agency said according to its estimate, the total liabilities for fiscal 2010 were more than three times the amount reported by governments. Reporting by Joan Gralla; Editing by James Dalgleish