Are employee pensions bankrupting states? Not really
A close look at state and local pension plans and a comparison with those in the private sector reveal a complicated story, but there's no evidence that state pensions are the burden to public finances that critics claim.
McClatchy Newspapers
WASHINGTON —
From state legislatures to Congress to tea-party rallies, a vocal backlash is rising against what are perceived as too-generous retirement benefits for state and local government workers. However, that widespread perception doesn't match reality.
A close look at state and local pension plans and a comparison with those in the private sector reveal a more complicated story. The short answer, though, is this: There's simply no evidence that state pensions are the burden to public finances that critics claim.
Pension contributions from state and local employers aren't blowing up budgets. They amount to 2.9 percent of state spending, on average, according to the National Association of State Retirement Administrators. The