Barack Obama will face an additional burdensome item in his in-tray when he enters the White House next year alongside sorting out Iraq, Afghanistan and rescuing the global economy—resolving what is believed to be the largest pension fund deficit in the world.

The liabilities for the retirement and healthcare benefits for all US Government employees, including White House staff, topped $1.6 trillion (€1.25 trillion) at the end of 2007, with only $790bn in the bank to cover them, according to documents published by the Office of Personnel Management in Washington.