Welcome to the latest edition of This Week in Pensions! This is the news you need to know in the fight for a secure retirement. We have gathered the top stories about pensions and retirement security from the previous week.
Our newest blog, “North to the Future: How Alaska’s Pension Past is Shaping the Future of its Public Service” by NPPC staffer Maria French, dives into the challenges faced by the state since the closure of its defined benefit pension system and explores the repercussions on public safety, education, and other essentials services.
Read to learn more about the efforts to reintroduce pension benefits through Senate Bill 88 and the opposition it faces.
The aging population in America is exerting a profound influence on both the workforce and the economy, with far-reaching consequences that demand urgent attention. As Baby Boomers exit the workforce, there simply aren’t enough workers to replace each retiree. Notably, the workforce is progressively aging, with the number of workers over age 60 increasing twofold since 1984. As a result, the mounting number of retirees is fueling greater demand for healthcare services, while the scarcity of caregivers is expected to worsen. As NPPC has repeatedly emphasized, resolving this issue demands proactive policy-making and decisive action. One critical step is for lawmakers to guarantee that all public employees have access to a defined benefit pension plan, ensuring their retirement security remains intact.
The tight labor market–due to Baby Boomer retirements–has contributed to the current public sector recruitment and retention crisis. Private sector wages are rising faster than government jobs, exasperating the issue. Since 2020, private sector wages have increased by 5.5 percent, over two percent more than the 3.4 percent income growth in the public sector. Securing and enhancing defined benefit pensions for public workers is vital in order for public employment jobs to compete with the private sector. Governmental agencies can compete with corporations in recruiting by highlighting the usually superior benefits package offered to public employees, including pensions.
Be sure to check back next Friday for the latest in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.