[T]here’s simply no evidence that state pensions are the current burden to public finances that their critics claim. Pension contributions from state and local employers aren’t blowing up budgets. They amount to just 2.9 percent of state spending, on average, according to the National Association of State Retirement Administrators. The Center for Retirement Research at Boston College puts the figure a bit higher at 3.8 percent. Though there’s no direct comparison, state and local pension contributions approximate the burden shouldered by private companies. The nonpartisan Employee Benefit Research Institute estimates that retirement funding for private employers amounts to about 3.5 percent of employee compensation. Nor are state and local government pension funds broke… if the assets in state and local pension plans were frozen tomorrow and there was no more growth in investment returns, there would still be enough money in most state plans to pay benefits for years to come.

Read full article [here].
by Kevin G. Hall, The Sacramento Bee.

Posted: March 6th, 2011, by: admin. Categories: . Awaiting Comments.