Saturday, September 18, 2010

State employees need massive pension reforms

The New York Times has carried some stinging columns this week on the sustainability of state employee pension funds, particularly an op-ed on Sept. 15 by Richard Riordan and Alexnader Rubalcava, link here , “How pensions can get out of the red”.

The op-ed suggests that Treasury could offer tax-free “pension protection” bonds to states that come clean, but the measures are painful and affect workers (including police and teachers, for example): raising retirement age, stopping defined benefit pensions for new employees and replacing them with 401(k)’s, and the like.

The on Saturday, Sept. 18, Mary Williams Walsh offered “The Illusion of Savings: Several states join Illinois in risky pension accounting” in the Business Section. The states included Rhode Island, Texas, Arkansas and Ohio.

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