Dutch-style pensions may be a good example for the U.S.
The New York Times published an interesting story on Dutch pension plans over the weekend. They are very different from those in the U.S.: The Dutch system rests on the idea that each generation should pay its own costs — and that the costs must be measured accurately if that is to happen. . . […]
13th of May 2014
The courts and public pension COLA cases — Washington is an outlier
The Center for Retirement Research reports that Between 2010 and 2013, 17 states (with a total of 30 plans) enacted legislation that reduced, suspended, or eliminated COLAs for current workers and often for current retirees. Of those 17 states, 12 of the cost-of-living adjustment changes have been challenged in court. In nine of those states, […]
27th of February 2014
The political risk of defined benefit pensions
The Economist writes about the “plan of adjustment” filed by Detroit as part of its bankruptcy proceedings: In order to shed much of its $18 billion debt, Detroit proposes giving unsecured bondholders, including holders of general-obligation debt, 20 cents on each dollar. Pensions will be cut, too. General pensioners will receive only 66% of their […]
18th of February 2014
More on public pension legal issues
Richard Epstein’s column this week asks, How can the government best roll back pensions in ways that satisfy key economic requirements without running afoul of serious constitutional concerns? The legal questions have arisen in several places (including Washington) and remain unsettled. Epstein: California pension law cases, without careful analysis, have evolved to freeze minimum pension […]
6th of February 2014
Public policy implications of California Rule for pensions
At the Volokh Conspiracy, a legal blog now housed at the Washington Post, Sasha Volokh has been writing about the California Rule and public pensions. Volokh’s brief description of the rule is: . . . in California (and some other states), the courts give constitutional protection not only to the amount of public employees’ pensions […]
22nd of March 2013
State treasurer argues against shifting state workers to 401k-style pension plan. There's more to it.
In today’s Seattle Times, State Treasurer Jim McInitire makes his case for rejecting proposals to place younger and newly-employed state workers in defined contribution pension plans, similar to the 401k programs common in the private sector. Basically, his argument amounts to a variation on “if it’s not broke, don’t fix it,” a sentiment I generally […]