CEPR Journal, May 2009
The recession that has gripped California’s economy has created intense pressures on public sector budgets, where ofﬁcials are forced to meet demands for greater services in the face of declining tax revenues. In turn, this may intensify efforts by taxpayer groups to dismantle traditional “deﬁned beneﬁt” pension programs for public employees. But policymakers would be wise to proceed with caution.
Authored by Beth Ilana and Ilana Boivie, the article explores why the public sector ought not to mimic the private sector trend away from pensions.
Read the full article here.