The official analysis of a proposed public pension initiative issued last week said “likely large savings” in retirement benefits would be offset by pressure for higher pay and other costs.
But the analysis does not estimate whether it would be a net gain or loss for government employers.
The initiative would open the door for what supporters of state and local government pensions have long feared — a switch to 401(k)-style individual investment retirement plans widely used by private-sector employers to avoid long-term debt and investment risk.
The basic clash, well known by now, is whether pensions are too generous, take money needed for basic services and will be “unsustainable” in the long run or, to the contrary, are affordable, manageable if correction is needed, and necessary to have quality government workers.
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