News Flash! 49 states have changed their pension laws
Focus shifts to making “defined contribution” plans mandatory.
The financial crisis and its aftermath prompted every state except Idaho, to slash pensions and/or eliminate defined benefit programs for defined contribution plans.
In a study of 32 plans in 15 states representing 65% of participants in its public plans database, the Center for Retirement Research at Boston College found most already have taken steps to reduce future pension costs by some combination of increasing employee contributions, raising age and tenure requirements, trimming salary calculation formulas used to set pension levels and shrinking or stopping cost-of-living increases.