- The recession’s impact: after a major fall in tax receipts in 2009, revenues overall have stabilized but remain well below pre-recession levels. And budget shortfalls for several governments are projected for the next few years.
- Some states have promised workers pension and health care benefits that may be challenging to deliver on due to those financial challenges.
- Meanwhile, scrutiny of public pensions by legislators, governors, and media and advocacy groups has increased.
- implementing various tightening measures, including raising taxes, cutting services, and implementing layoffs and furloughs;
- reevaluating employee benefits, including curbing pension COLAs, requiring employees to contribute more to retirement and health-care plans, eliminating retiree health benefits for new hires, and extending the retirement age to receive full pension benefits; and
- adopting hybrid pension plans to replace traditional defined benefit plans that shift more responsibility for funding to employees.
Have these developments affected you or your family, directly or indirectly? If so, what steps have you taken in response, whether related to reducing expenses, saving more, shoring up your job skills, or adjusting your expectations? Share your thoughts by clicking on “Comments” above.