State Budget Solutions Applauds Public Pension Study
Alexandria, VA - Bob Williams, President of State Budget Solutions (SBS), a national nonprofit organization advocating for fundamental reform of state budgets, released the following statement regarding the release of the public pension study by the Laura and John Arnold Foundation (LJAF). The study, "GASB Won't Let Me" - A False Objection to Public Pension Reform challenges one of the most commonly held objections to structural pension reform, namely that pension reform will increase costs in the short run.
"Laura and John Arnold Foundation's paper dispels the myths that are preventing state legislators from enacting sound pension reform. For far too long people have wrongly believed that ending defined benefit programs and converting to a defined contribution (IRA type) pension system will raise costs. However, moving to a defined contribution plan is exactly what our states desperately need to avoid further fiscal debt," Williams said.
Williams added, "Unfunded pension liabilities are the dark cloud on the horizon of state budgets; a cloud totaling trillions of dollars. A move to defined contribution plans would reduce the risk to taxpayers, provide lawmakers with a reliable cost estimate for budgeting and give state workers control over their retirement funding."
Williams applauded the LJAF and Dr. Bob Costrell for their work to strengthen pension reform. Williams concluded, "State Budget Solutions urges state legislators in every state to read this report and begin implementing aggressive pension reform before it is too late."
To set up an interview with Bob, please contact Meghan Tisinger at Media@statebudgetsolutions.org