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:
- Gutting agencies to fund pensions is irresponsible by Larry Totten: writing to the Bowling Green Daily News, Totten argues that the state legislature in Kentucky is being irresponsible by not pursuing tax reform. “Gutting state operations to fund public pensions today is as irresponsible as was the underfunding of pensions years ago… Additional revenue can and must be raised through fair, equitable and sustainable tax reform.”
- A secure retirement may be in jeopardy for millions of Americans by Charles Jeszeck and Frank Todisco: the Director and the Chief Actuary of the Government Accountability Office (GAO) respond to an op-ed by Andrew Biggs, who criticized two GAO reports on the U.S. retirement system. Both reports from the GAO raised serious concerns about the retirement security of working families in the United States. Jeszeck and Todisco state: “Fundamental changes to the U.S. retirement system over the last 40 years, coupled with societal and economic trends, have raised challenges to achieving a secure retirement. There is a need to develop thoughtful and effective policies to ensure that all Americans have the prospect of a secure retirement.”
- What sort of pension reform? by Major (Ret.) Ernest Loomis: the New Hampshire decennial retirement commission recently concluded months of hearings and study and is soon to report its findings to the governor and state legislature. Loomis argues that any proposed pension changes should not negatively impact state employees, who are already working longer and paying more for their pension benefits.
- Letter: IPERS is in danger by Richard Toohill: Republican politicians in Iowa have been discussing potential changes to the Iowa Public Employees Retirement System (IPERS). Despite this talk, some politicians have said no changes to IPERS will occur this year. Toohill argues that voters in Iowa should we wary of believing these promises.
- Remain calm — state can fix pension crisis, avoid huge benefit cuts and shore up budget by Jason Bailey: the executive director of the Kentucky Center for Economic Policy writes in the Louisville Courier Journal that Kentucky has good options for fixing its budget problems. The state does not need to make massive and unnecessary changes to its public pension systems. The state also has plenty of ways to collect much needed revenue to fill gaps in the budget.
Be sure to check back next week for the latest news in the fight for a secure retirement!