In this episode of the Heartland Institute’s weekly Budget & Tax News podcast, managing editor and research fellow Jesse Hathaway talks with Nelson J. Rockefeller Institute of Government director of fiscal studies Don Boyd about a new study examining how the assumptions and gimmicks public pension boards use to fund pensions are affected by investment risks, and how those risks affect taxpayers and government employees.
South Carolina lawmakers have undertaken reforms to address some of the serious issues with their state’s pension system, but major changes are still needed to prevent future budget problems. In 2012, the state increased employee and employer contribution rates for the South Carolina Retirement System (SCRS), the state’s public pension fund. The increase affected current members as well as new hires. The 2012 reforms also reduced the expected rate of return for pension investments and reduced the minimum cost-of-living benefit increase. In 2000 and 2002, the state created optional defined-contribution plans for existing and new state and local government employees and teachers.
In this episode of The Heartland Institute’s weekly Budget & Tax News podcast, managing editor and research fellow Jesse Hathaway talks with Mercatus Center at George Mason University’s State and Local Policy Project scholar Adam Millsap about a new study ranking each US state’s financial health, based on factors such as short- and long-term debt, fiscal obligations, unfunded pensions and entitlement spending.
A judge in Sangamon County Circuit Court has blocked a modest reform of Illinois’ pension system for state workers and retirees outside Chicago from taking effect June 1, giving Gov. Pat “Four Counties” Quinn the excuse he’s probably been looking for to block reforms for two of Chicago’s pension plans. (I’ll explain “Four Counties” in a moment.)
TweetIn the race to the financial bottom the State of Illinois vies nicely with several other states, including (depending on the precise year involved) California, New York, and Ohio, with[…]
TweetThe pension system in Illinois is broke, both literally and structurally. According to Bloomberg, while the national median funding ratio for state pension systems is around 71.7 percent (for the[…]
TweetMy colleague at The Heartland Institute, Eli Lehrer wrote a rather controversial op-ed for the Weekly Standard recently arguing that “Pensions Aren’t the Problem.” Eli’s piece makes some good points[…]