People are afraid of losing their pensions. But they misidentify the real threat, which is an underfunded system in an insolvent government. This was the lesson from Pritchard, Ala., and Central Falls, Rhode Island. Transitioning to systems that eliminate the underfunding risk protects members benefits. When the Utah Legislature debated the reform legislation, public employees protested. Their concerns were mitigated, however, when the underfunding risk was fully explained. Government workers did not cause the underfunding problem and are the primary beneficiaries of reforms that eliminate the risks. These lessons should be carefully considered as Michigan legislators discuss bills to close its underfunded teacher retirement system. michigancapitolconfidential/20018
Posted on: Tue, 29 Apr 2014 20:37:56 +0000