Welcome to the latest edition of This Week in Pensions! As we do most weeks, we have gathered the best stories about pensions and retirement security from the previous week. This is the news you need to know in the fight for a secure retirement.
Here are this week’s top stories:
- Pension reform not helpful by Nick Ciaramitaro: writing to The Detroit News, the president of the Coalition for a Secure Retirement warns that the recent changes to Michigan’s public school employee retirement plan will harm the retirement security of teachers and other public school employees and may discourage future educators from teaching in the state.
- States should stick to pension promise by Crosby Smith: the president of AFSCME Local 2645 argues that Illinois must keep its promises to working families and preserve public pensions. The true cause of Illinois’ fiscal woes is the lack of revenue generated by the state’s low, flat income tax.
- 401(k)s not the answer for Kentucky pensions by Ron Richmond: Kentucky Gov. Matt Bevin has proposed closing the state’s public pension plans and forcing new state employees into risky 401(k)-style plans. Richmond writes to the Courier-Journal to oppose this unnecessary and harmful proposal.
- If someone tells you your kid’s teacher would be better off with a 401(k) than a pension, don’t believe it by Nari Rhee: teacher pension plans have been under attack in states from Pennsylvania to Michigan. Rhee argues that the vast majority of teachers are better off with traditional pensions than 401(k)-style plans. Furthermore, her research shows that most teachers stick with the profession for the long-term.
- Iowa GOP takes aim at IPERS by Matt Sinovic: Republican legislators in Iowa are empowering the Reason Foundation, funded by John Arnold and the Koch brothers, to study Iowa’s public pension system. The Reason Foundation is strongly anti-pension and will likely produce a report urging Iowa legislators to close IPERS and force public employees into risky 401(k)-style plans. This attack on IPERS is, unfortunately, just the latest ideologically motivated attack on working families in the Hawkeye State.
Also, don’t miss the first two parts of our new series exploring the pervasive myth of the “pension crisis”. And be sure to check back next week for the latest news in the fight for a secure retirement!