Closing Pensions For Public Workers Has Proven A Mistake
In a Forbes column, NIRS Executive Director Dan Doonan writes that state leaders have learned the hard way that ending pension benefits comes with little to be gained and a big price to pay.
More specifically, states that shifted new employees from defined benefit pensions to defined contribution or cash balance plans experienced increased costs for taxpayers without significant funding improvements. Also, moving away from pensions results in cuts to public employees’ retirement security, while government employers face increased challenges hiring and retaining staff to deliver essential public services.
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.
