Delaware State House of Representatives - Minority Caucus identifies issues for 2014 on facebook:
The lobbyists' revolving door ~
The lobbyists' revolving door ~
Chemicals in consumer products ~
And pension plan alternatives ~
The issue of pensions has been of increasing concern for state and local governments around the country. Most have "defined benefit pension plans," which promise a specified monthly benefit on retirement that is determined by a formula based on an employee's earnings history. The problem is that this benefit provides an ongoing, and often growing, future financial obligation that some governments are finding difficult to adequately fund. Such plans were once the norm in the business sector, but most have moved to individual retirement accounts (IRAs), giving their employees a set monthly contribution towards their retirement and providing help for investing that money. The system presents employers with a predictable obligation that ends with the worker's retirement. Although adjustments were made a couple of years ago to reduce costs, Delaware still has a defined retirement plan for its full-time workers. Should the state look at adopting the IRA system for all future employees, while retaining the defined pension covenant it has with current workers?
0 comments:
Post a Comment