Over the past two years, 40 legislatures have revised at least one state retirement plan. The changes range from increasing employee contribution requirements and age and service requirements for retirement to revising cost-of-living adjustments.
The Thursday general session at NCSL's 2011 Fall Forum tackled the issues of state pensions that focused on "hybrid" pensions that several states are considering. This model provides employees with both a traditional pension plan and a 401 (k)-type plan. It has been adopted in Utah and was recently signed into law in Rhode Island. It can provide safer employee benefits than moving entirely to a 401 (k)-type plan, and can be less expensive for governments than a traditional plan.
NCSL sat down with Utah Senator Daniel Liljenquist to discuss Utah's move to this type of pension plan and what it means for the state. Senator Liljenquist was one of four panelists on the pension reform session at NCSL's Fall Forum. We will have video of the entire panel discussion in the days to come.