And so it is heartening to see that at least one major state has decided to take a long-term approach: On Monday, Pennsylvania Gov. Tom Wolf signed a pension reform law that will help the state appropriately compensate its future employees while reducing risks to its taxpayers. Those public employees will have to choose from three retirement savings options similar, in varying degrees, to the defined contribution plans common in the private sector. Among other benefits, this could make retirement savings portable for many who may only work for Pennsylvania for a few years before moving on. Pennsylvania had already acted in 2010 to put the state’s pension funding ratio, which as of 2015 stood at an unsatisfactory 56 percent, on an upward trajectory.

Source: Washington Post June 18, 2017 23:15 UTC