Many state and local retirement plans are on an unsustainable course, having failed to set aside enough money to fund the promises they have made. To inform state policymaking, Pew provides research on the fiscal challenges state and cities face as a result of their pension and retiree health promises. With the understanding that there is no one-size-fits-all solution, the project also offers technical assistance to states and municipalities as they undertake pension and retiree health care reforms to ensure their public sector retirement systems are affordable and sustainable, provide a secure retirement for workers, and preserve governments' ability to recruit and retain a talented public-sector workforce.
The Bipartisan Effort in 2013 Resulted in Fair and Effective Retirement System for Employees and Taxpayers Alike
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The challenge of balancing pension costs with the need to recruit and retain a strong workforce has prompted policymakers in many states to take a closer look at how they provide retirement benefits. A number of states with defined benefit (DB), or traditional, pension plans have policies that allow them to retain the core elements of the benefit while sharing the risk of cost increases—as... Read More
A number of states with defined benefit, or traditional, pension plans have enacted policies that retain the core elements of the plans while sharing the risk of cost increases—as well as potential gains—between public employees and employers. These mechanisms for sharing costs can help reduce volatility and investment uncertainty while preserving the ability to pay promised pension benefits. Read More
Most state and local public workers are members of a traditional defined benefit (DB) plan, but many today also have access to what are known as defined contribution (DC) plans, similar to private sector 401(k)s. Read More