The state teachers union is rejecting most of the final recommendations of the special pension commission, particularly its proposal to shift half the funding of pensions onto county school boards or governments. In a strong letter to the governor and legislative leaders, the union also wants county governments to be forced to fully fund school budgets and to give them authority to raise more taxes or disregard local tax caps.
Read MoreA proposal to change the funding method for state pensions that will reduce state contributions to the system and delay reducing the state’s unfunded liabilities was criticized by two private sector representatives on the special commission studying retirement benefits. “The pension plan will never get to 100% funding,” said George Roche, former chairman and president of mutual fund giant T. Rowe Price, at a hearing Monday. “The workers are really exposed to a lot of risk and I don’t like it.”
Read MoreWhile the governor and legislature this year raised what state workers and teachers pay into their pension plans and cut benefits for future employees, the state’s most generous retirement plan survived completely unscathed – the pensions for judges. The 351 retired judges (or their spouses) get an average pension of $68,000 a year, and 113 of the judges, who must retire at 70, can also earn up to a third of the annual salary by continuing to process cases around the state.
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