State:
Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Copy of Overtime Primer: Highlights from the New Regulations

The federal DOL overtime regulations go into effect this year. Are you ready?


Download Now!




This report includes a summary of key changes, including the salary level test and salary basis test.

As a bonus, we've included a handy flowchart to help you determine exemption status under the FLSA.

Download Now!
September 23, 2005
Pensions Becoming 'Time Bombs' for State, Local Governments

State, county, and municipal governments face "ticking time bombs" in their pension plans because of all the aging baby boomers in their workforces, according to Stateline.org, a website the covers state governments.

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!

Prompted by fears that the boomers will bust state budgets when it comes time for their payouts, leaders in some states are trying various ways to revamp their public employee retirement systems, the website reports. It cites one estimate that under their current systems, governments will come up $292.4 billion short in fulfilling their retirement promises to employees.

The Council of State Governments, a bipartisan umbrella organization for state government officials, estimates that the vast majority of states' retirement plans for their employees are under funded.

Sujit CanagaRetna, a fiscal analyst with CSG, told Stateline.org that state officials are just beginning to recognize the problems lurking in their pension programs, in part because states have been preoccupied since the 2001 economic downturn with balancing their books and closing a $235 billion budget gap.

To limit their pension debts, five Republican governors this year championed proposals to mimic the private sector by moving state employees from traditional pension programs--with guaranteed payouts--to 401K-style programs, where the state contributes a set amount each month to an employee's investment fund. When employees retire, the money in the fund is theirs.

Read the Stateline.org article here.

Featured Special Report:
Top 100 FLSA Overtime Q&As
   
   
 
 
Twitter  Facebook  Linked In
Follow Us
CT-WEB01
Copyright © 2016 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on http://Compensation.BLR.com
Document URL: http://compensation.blr.com/Compensation-news/Benefits-Leave/Employee-Benefits/Pensions-Becoming-Time-Bombs-for-State-Local-Gover/