By Hank Kim
Source: Governing.com
Although some may argue that pensions are no longer a relevant tool for recruiting and retaining public workers, the historical data and broader research show otherwise. However, with financial literacy being a significant challenge in the United States, it is critical that employers provide the necessary education around these benefits to maximize their potential in the battle to attract and keep talent.
As pensions have become less common in the private sector, they have increasingly become a highly coveted benefit for current and prospective public servants. A 2020 study from the National Institute on Retirement Security examined millennial state and local government employees’ views on their compensation and benefits. The researchers found that a major reason that 74 percent of millennials pursued their role in the public sector was because the employer offered a pension and that 84 percent cited this benefit as a major reason for remaining in their current positions.