Forty-three states have made changes to their public pension plans in the past few years, with the most recent being Illinois, Ohio and Louisiana. As states battle against budgetary problems, the unsustainability of current pension plans has become a major point of contention. Let's take a closer look at what's going on in those three hotbeds of pension reform.
Many plans guaranteed benefits for their retirees so making changes to them midstream has caused a lot of angst for workers and retirees.
Illinois House Minority Leader Tom Cross (R-Oswego) testifies at a House pension committee hearing at the State Capitol (AP Photo/Seth Perlman)
Illinois’s pension plan overhaul
An Illinois House of Representatives Personnel and Pension committee took the first step toward revamping government pension plans by approving a bill this past week that would cut government pensions and shift retirement costs to schools and universities.
Workers at the Terminal Tower in downtown Cleveland, Ohio (AP Photo/Mark Duncan)
Ohio Senate passes pension bills
Ohio’s Senate passed measures that would change the way four out of the state’s five pension funds will operate, according to an article in The Plain Dealer in Cleveland. The funds cover nearly 700,000 contributing members and about 400,000 beneficiaries, with assets of $160 billion.
(AP Photo/Gerald Herbert)
Louisiana passes landmark pension legislation
Louisiana passed a bill May 30 that will create a 401(k)-style pension plan for future state employees. What makes the plan different from other state plans is that it is the first one to provide only a cash balance retirement plan for certain employees, those hired after July 1, 2013.