Thinking Strategically about Retirement Benefits

Article excerpt

Facing reduced revenues and increasing demands for services, many state and local governments are carefully examining the financial sustainability of their retirement plans. Ensuring that funding will be adequate to support promised benefits is a critical task, and jurisdictions are considering the best ways to make sure their benefits will be funded for the long term. In this issue of Government Finance Review, we take a strategic look at public-sector retirement benefits and the ways in which governments are ensuring sustainability

In "Public-Sector Pension Plans: Major Challenges and Common-Sense Solutions," Kim Nicholl discusses the need for comprehensive funding and benefit policies, which reassure all stakeholders that pension plans are meeting broad public policy objectives.

The primary goals of recent pension reform legislation have typically been to reduce costs and employer risk, adjust to the needs of a more mobile workforce, and equalize benefits between the public and private sectors. In "How to 'DB-ize' Your Supplemental DC Retirement Plan," Paula Sanford and Joshua Franzel explain why your jurisdiction might need to consider a supplemental defined contribution plan.

In "Understanding Actuarial Information," Richard H. …