Pensions

  • by

The legislature has known for some time that it has to fix our state pensions problem. The amount of money going into pension accounts for state workers eventually wouldn’t be enough to pay benefits out. There are a number of reasons for this. People are living longer, and the assumed rate of investment return has been higher than most other states. In addition, cost of living adjustments have been more generous than the funds can afford. Minnesota was put on notice that its credit rating could suffer if the legislature did not address our pensions issue. This could have made it more expensive to borrow for construction projects. This pensions compromise is supported by everyone – one of the few times this has ever happened. The final bill cuts the unfunded liability in about half and includes shared sacrifice with both employers and employees kicking in more and retirees expecting slightly less in cost of living increases. The legislation passed the Senate Floor unanimously and awaits action in the House. (SF 2620)

jacquec