Public pensions  not ready to retire

Public pension systems like New York’s are under fire from those who say defined benefit programs are unaffordable relics of the past. But Beth Almeida of The National Institute on Retirement Security writes that they’re actually a good deal for everyone.

Categories: Pensions/Retirement
Jay Jochnowitz

2 Responses

  1. JG says:

    Good article that makes plenty of sense, and save some cents and dollars as well.

  2. Mao Tse Browne says:

    The best approach is for the State of NY to rid itself of as much of the public pension debt as possible. One way would be for the Legislature to pass a law that would allow each government unit to “buy out” both retirees and present workers, by offering them a cash settlement, in exchange for their pension. The individual could then reinvest that money in an IRA, etc..

    The value of each pension would be determined actuarially and then the individual would receive a percentage of the actuarial value (50 cents on the dollar, for example). The first phase would be voluntary, but over time, the offer would get less and less generous, until it was mandatory.