Pension Reform

Unfunded or under-funded public retirement plans are some of the biggest financial threats facing state and local governments.

States that promise extravagant benefits packages rack up huge amounts of debt. As more public employees retire, local governments are forced to drain funds from other priorities, such as education and infrastructure, and increase taxes to cover the bill.

These regressive policies can stop economic growth and the spread of prosperity right in their tracks.

Some state and local governments have addressed this problem and have seen increased economic growth and job creation. Meanwhile, states that are piling on debt and cutting back other programs have seen tax hikes and fewer people achieving success.

For the sake of their citizens, these states need to look at their neighbors’ success and start down the road to reform.

Sep 11, 2015

Trouble Ahead for State Pension Funds

Investment return projections for public pension funds have hit a 25-year low, suggesting continued signs of financial weakness for state pensions, according to a report from the National Association of State…

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