24 07, 2019

What Congress Could Do To Stop a Pension Crisis

2019-07-24T15:20:25-08:00July 24th, 2019|Categories: Defined Benefit Plans|Tags: , |

A looming retirement crisis is facing the U.S. taxpayer that will become an economic tsunami if Congress doesn’t act. The pensions of 1.3 million workers in certain multiemployer pension plans and the federal government’s Pension Benefit Guaranty Corporation (PBGC) are set to collapse. Only Congress can prevent this from cascading throughout the economy, to taxpayers and into healthy pension plans and their employers. How things spiraled into this crisis is complicated, but important to understand. Some say it’s a multiemployer problem, [...]

20 02, 2018

Wall Street caused pension crisis, not cops and firefighters

2018-02-20T09:28:46-08:00February 20th, 2018|Categories: Defined Benefit Plans|Tags: , |

If there’s one thing the debate over public employees’ pensions has taught us, it’s that California needs to invest more in mathematics instruction. When The Sacramento Bee editorial board (“The pension nightmare for California’s cities is getting scarier,” Feb. 13) and city officials wag their fingers of blame at firefighters, teachers, police officers and state pension systems that have yielded 7 percent returns in the long run, it’s clear there’s a fundamental misunderstanding of the numbers. In 1999, when [...]

17 07, 2017

The “Pension Crisis” is a Myth, Part One

2017-07-17T15:38:37-08:00July 17th, 2017|Categories: Pension Reform|Tags: , , |

Since the Great Recession in 2008, warnings of an impending pension crisis have been splashed across the business pages of newspapers across the country. Despite these boisterous decrees, America’s public pension funds are stable. We explore the roots behind the false pension crisis narrative and examine the facts. Public pension plans have existed for more than a hundred years. Beginning in the late 19th century, cities and states started offering defined benefit pensions to ensure their employees would be able [...]

17 03, 2015

Meet the real villain in the public pension crisis

2015-03-17T22:30:08-08:00March 17th, 2015|Categories: Pension Reform|Tags: , , |

Over the last year, the city of Memphis, Tennessee, has been bleeding firefighters and police officers. Two hundred and fifty of them quit, others retired, and replacements are becoming more difficult to attract. This past July, just over half the city’s police force took a sick day in protest. Their complaint? A December decision by the City Council to partially move public employee’s pensions to a hybrid system that includes 401(k)-style accounts for workers with 7.5 years of tenure or less. [...]