Mon, 01/25/2021 - 1:19pm tim
by Timothy McQuiston, Vermont Business Magazine Vermont State Treasurer Beth Pearce January 15 issued her long-awaited report on how to fix the looming $3 billion unfunded liabilities in the state’s pension and retirement health plans. The report calls for the state to increase payments on the one side while requiring retirees to contribute more financially.
However, Pearce does not recommend changing benefits for any current retiree nor does she recommend changing the retiree plans from the existing “defined benefit” to a “defined contribution.”
Going from a fixed payment DB to a 401(k)-type DC has been a point of significant contention over the years with the state employees’ and teachers’ unions opposing such a measure.