Thu, 01/28/2021 - 4:17pm -- tim
by Don Turner 2021 marks 25-years since then-Treasurer Jim Douglas recommended that the state change its trajectory from costly "defined benefit" retirement plans for state employees and teachers to "defined contribution" plans. Eleven years ago, in 2009, a special commission suggested a consideration of this same idea. I have previously written about our pressing need to consider a defined contribution option, as well as the "sleeping giant" of our unfunded liabilities.
Unfortunately, since the time I wrote my opeds in 2019, Vermont's unfunded liabilities have ballooned from $4.5 billion to more than $5 billion.
That increase has occurred despite repeated assurances from current Treasurer Beth Pearce that all was well--the Legislature simply needed to make its yearly obligated payments to the pension system, and all would work out fine. According to her, there was no need for structural pension reform.