There’s A New Retirement Normal For Public Employees: Supplemental Savings
In a Forbes column, NIRS Executive Director Dan Doonan writes that one segment of the workforce has been on stable ground when it comes to retirement: the state and local government workforce. Today, the vast majority of state and local workers have a defined benefit (DB) pension, and nearly three-fourths of public employees participate in Social Security. Many state and local workers also are offered a retiree medical plan by their employer and have access to supplemental individual retirement savings plans similar to 401(k) accounts in the private sectors.
But there are growing concerns that even with these important benefits, public workers may fall short when it comes to retirement income adequacy.
Statement on Efforts in Alaska to Restore Pension Benefits to Address Grave Workforce Shortage
Alaska’s effort to restore a pension plan for public workers represents meaningful progress in addressing one of the state’s most pressing challenges: attracting and retaining a stable, experienced public workforce. While Governor Dunleavy has vetoed the legislation, the fact that the measure passed both the House and Senate demonstrates a growing recognition that retirement benefits are not just about retirement security — they also are an essential workforce management tool.
