Recent public pension reforms have focused on cutting benefits and raising required employee contributions to close plan funding gaps. This approach usually makes government employment less attractive to younger employees who expect to spend less than a full career in public service. Alternative approaches could distribute benefits more equally across the workforce and appeal to both younger, shorter-term employees and older, longer-term employees. This brief identifies five such options, including revising the plan benefit formula, offering alternative plan designs, and extending Social Security coverage to all state and local government employees.
The Urban Institute
Richard W. Johnson
April 06, 2015