For Immediate Release
Californians for Retirement Security
Boston College Study: Pension “reforms” will offset impact of financial downturn on state, local pension costs
SACRAMENTO – A new study by the Center for Retirement Research at Boston College says that pension “reforms” made at the state and local level will restore the state’s public pension funds to pre-financial crisis levels.
The study, “State and Local Pension Costs: Pre-Crisis, Post-Crisis, and Post-Reform,” looked at changes in 32 plans in 15 states (including CalPERS and CalSTRS). It notes that recently-enacted cuts to public employees “will, over time, improve the financial outlook for plans and help ease their impact on other budget priorities.”
Researchers also found “in most cases, reforms fully offset or more than offset the impact of the financial crisis.”
“This study definitely refutes all the Chicken Littles who say that public employees haven’t made enough sacrifices at the state and local level to reduce pension costs,” said Dave Low, Chairman of Californians for Retirement Security. “Whether it has been at the bargaining table in more than 300 jurisdictions or at the state level, public employees have been part of the solution to ensure public pension systems are financially sound.”
The complete study is available at http://crr.bc.edu/briefs/state-and-local-pension-costs-pre-crisis-post-crisis-and-post-reform/
A California-specific fact sheet is available at http://crr.bc.edu/wp-content/uploads/2013/02/California.pdf
Californians for Retirement Security is a coalition of more than 1.2 million firefighters, teachers, peace officers, school employees, and other active and retired public employees.