Stateline Headlines

Behind Illinois's pension saga

Universities offer partial Illinois pension fix

Pension fight shows split among Dem leaders

Quinn shifts gears again on pension reform

Lawmakers return Wednesday for more pension gridlock

New Orleans firefighter pension fund bill signed by Gov. Jindal

Madigan plans new vote on Illinois pension plan

BOE budget includes early retirement plan

Florida has highest rate of seniors

Madigan goes against Quinn on pension reform

Unstable PERS leads to retirement rush

BOE budget includes early retirement plan

Illinois dinged by downgrade in bond sale

Gov hopefuls need to put state’s pension challenge ahead of 2014 race

Quinn flexes his muscles

Quinn pitches pension plan of attack but no agreement

Quinn asks lawmakers to combine 2 pension plans

Quinn asks lawmakers to combine pension plans

Quinn says he'll meet Monday with leaders on pension changes

Shift Oregon budget debate to revenue, not PERS, says Gov. John Kitzhaber

Quinn calls pension session after credit downgrade

Quinn calls on House, Senate to return for pension reform

Budget to seek lasting PERS solution

The Game of PERS

Michigan House approves indefinite use of retired corrections officers

Lawmakers to consider retirement savings fund for all workers in Oregon

Alabama county strikes a bankruptcy deal

Madigan misses Quinn's pension reform meeting

Quinn prepared to call special session on pensions

Council 94, R.I.'s largest state employee union, hires Raimondo critic as pension fund consultant

Seniors Are New Target for Tax Increases

Over the years, states have carved out ever more generous tax breaks for the elderly. Now, Kentucky and a few other states are beginning to question whether these policies cost too much.

Illinois Passes on Pensions, Boots Lawmaker

The Illinois Legislature emerged from a special session Friday with one less lawmaker and no plan to address the state’s soaring pension obligations.

Illinois Lurches Forward, One Budget Crisis at a Time

Illinois faces a series of budget problems, including its latest crisis on pensions. But the drumbeat of bad news makes it easy to miss the big steps the state has already taken.

Public-Sector Issues Erupt in Presidential Campaign

President Obama and GOP presidential hopeful Mitt Romney both found themselves over the weekend explaining comments they made involving the public sector.

Walker Win in Wisconsin Tops Historic Primary Day

In one of the busiest election days of 2012 and one of the most historic, voters in Wisconsin decided not to recall their Republican governor who set off a national debate by curtailing collective bargaining rights for state public employees. Voters in six other states also went to the polls.

Illinois Rushes to Finish Budget, Medicaid and Pension Changes

What may be the nation’s most fiscally troubled state is in the middle of a fateful week.

Q&A With Outgoing Colorado Pension Chief: ‘The 401(k) Experiment Is a Failure’

After more than two decades heading public employee pension systems in Colorado and Kansas, Meredith Williams says Americans are woefully underprepared for retirement.

Louisiana Weighs Deeper Pension Cuts

Forecasters fear the last round of pension plan reforms will not be enough to guarantee solvency in the long run.

West Virginia Tackles Retiree Health Costs

The state makes an unusual down payment on its massive health benefit debt to retired public employees.

Courts Block Efforts at Public Pension Change

Two judges have ruled that their states cannot make existing employees contribute more toward their retirement benefits.

Cuomo's Pension Proposal Riles Unions

TODAY'S TAKE: New York's governor has a plan that he says would save state and local governments $113 billion over 30 years by reducing guaranteed pension benefits to public workers. The groups representing those workers aren't happy about it.

Pension Plans Look Toward Rate of Return

Preoccupied for the last several years with their future cost burdens, public pension managers are starting to think more about how to get a bigger payback on the money they invest.

Pension Vote in Rhode Island Shows Changing Political Times

PROVIDENCE, Rhode Island - How did an overwhelmingly Democratic state legislature and a union-backed governor come to approve the toughest public pension cuts in the nation?

Far-Reaching Pension Overhaul Set to Become Law in Rhode Island

TODAY'S TAKE: Legislators in Rhode Island have passed a contentious measure to rein in the state's exploding public pension costs. Opponents have threatened a lawsuit, saying the lawmakers "are trying to solve a 40-year-old problem in one day."

San Francisco Voters Approve Pension Cutbacks

A coalition of business and labor groups won passage of a ballot measure reducing pension benefits for San Francisco's public employees. The question is how far it will go in solving the city's serious long-term pension finance problems.

A New Pay System for Wisconsin State Workers

MANAGEMENT BEAT: Wisconsin's new compensation plan for state employees, the first in decades to be drafted without significant worker participation, freezes pay and creates a controversial new method of rewarding employee performance.

Rhode Island Begins Debate Over Ballooning Pension Obligations

TODAY'S TAKE: Hundreds of demonstrators are expected in Providence today (October 26) as state lawmakers hold their first public hearing on a major overhaul of the state pension system, one that asks more of current retirees as well as future pensioners.

As Michigan Passes Pension Tax, Maine Considers Repealing One

Does a pension tax harm a state's economy? It depends on which governor you ask.

Is Nebraska's Cash Balance Pension a Model?

Nebraska uses an unusual hybrid pension plan that blends the traditional fixed-benefit approach with something resembling a 401(k). Looking to save money, several states are considering copying it.

Judges Uphold Cost-of-Living Cuts to Pensions

TODAY'S TAKE: Colorado and Minnesota lawmakers could legally reduce cost-of-living adjustments for currently retired state employees, judges said. The rulings could prompt more states to try the same thing.

GASB's Robert Attmore Discusses New Pension Rules

This week, the Governmental Accounting Standards Board will vote on new rules that would make dramatic changes in the way states calculate their pension liabilities. Stateline caught up with GASB chairman Robert Attmore to find out how the new rules will impact states.

States Overhaul Pensions but Pass on 401(k)-Style Plans

This year, many states were poised to switch from traditional pension plans to a kind similar to the ones popular in the private sector. That didn't happen. But states did cut employee benefits, raised the retirement age and increased the amount that public workers were expected to contribute to their own pensions.

Is the State Retirement Boom Finally Here?

Shifting demographics present challenges for public workforces. Many Baby Boomers have been delaying their retirements because of the economy, but retirement incentive programs and cuts to benefits may be changing that.

State Pension Gap Continues to Grow

The news about state pension plans is simple, and not encouraging: States are further behind in funding them adequately than they were a year ago.

When a Pension Overhaul Comes Without Social Security

Every state has at least some public employees who are not allowed to receive Social Security benefits. As states ask workers to contribute more toward their pensions, making workers eligible for Social Security would come with pros and cons.

DROP Pensions: A Sound Investment or a Waste of Taxpayer Money?

In the 1990s, some states began promising lump sum retirement checks to employees they wanted to keep. Some have decided it's a practice they can no longer afford.

Labor Union Discord Reaches New England

TODAY'S TAKE: Maine's Republican Governor Paul LePage wants public employees to work longer and pay more for their retirement benefits, igniting protests in Augusta resembling those recently seen in the Midwest.

California Looks to Current Workers' Pensions for Savings

MANAGEMENT BEAT: Pension commission argues for tough choices in California … Republican governors back off opposition to collective bargaining … No more "SWAG" in California, and other government management news.

California Workers Choose Pensions Over Furloughs

MANAGEMENT BEAT: California workers retire in droves … Senate Republicans in Ohio tackle labor unions … New Jersey cracks down on lame-duck promotions, and other government management news.

California Pension Funds Mostly Erase 2008 Losses

TODAY'S TAKE: California's two huge pension funds report that they each earned returns of more than 12 percent last year, mostly erasing heavy losses suffered during the 2008 stock market decline. Other states are reporting sharp gains, too.

Activists Seek New Tactics to Break Old Pension Deals

Conventional wisdom has long held that pension contracts negotiated with existing and retired public employees are sacrosanct. That principle is about to be tested in legislatures and in courts.

Maine Republican Legislators Contemplate End to Labor Committee

TRANSITION WATCH: Maine Republicans seek to fold historic panel, Connecticut's pension gap gets bigger, and more news of the historic shift in power in the states.

Election Adds Pressure to Change Public Pensions

Pension funds became a hot political subject in many campaigns this year. The issue is only going to get hotter.

Pensions Become a Heated Issue in 2010 Politics

State candidates across the country are proposing to slash the rising cost of public employee retirement benefits. Republicans generally back 401 (k)- style self-invested retirement plans, putting pressure on Democrats whose labor supporters want to keep traditional pensions.

Pension Fund Investments Are Up, but Gaps Persist

State retirement plans earned a median 13 percent return for the budget year that just ended. But the financial challenges facing public plans are anything but over.

States Test Whether Public Pension Benefits Given Can Be Taken Away

Most changes made to shore up state pension funds have been aimed at new employees. Now, three states are targeting current retirees - a group that has been considered off limits.

Pension Overhaul Treats Lawmakers, Other State Workers Differently

In Missouri, the new retirement age for government employees is 67. For legislators and other elected officials, it's 62. As states look at reining in pension costs, are lawmakers giving themselves a better deal than everyone else?

N.J. Teachers Rush Into Retirement

TODAY'S TAKE: Chris Christie, the outspoken New Jersey governor who has become synonymous with spending cuts, appears to have instilled fear in state labor unions. New numbers show that teachers, in particular, are retiring in waves, apparently fearful that the Christie administration will go after their pensions and benefits.

In Graying West Virginia, a Mountain of Retiree Health Bills

A rule change in West Virginia means that new state employees and teachers will have to pay for their own health care when they retire. But that doesn't begin to address staggering health costs for existing employees and retirees.

In Some States, Pension Pain Yields Budget Gains

To cut down enormous public pension cost burdens, states are beginning to target current and future public workers for higher retirement contributions. Employee labor unions are fighting back, but they may have little choice given the intense pressure to reduce deficits.

In New Hampshire, a New Way on Retiree Health Costs

State and local governments across the country are wrestling with how to pay the medical bills of retired public-sector workers. New Hampshire is trying a model that won't solve the whole problem but almost certainly will help.

Vermont's Pension Experiment

Like many states, Vermont faces rising public employee pension costs while trying to close a budget shortfall. A state panel recommended cutting pension benefits, angering employee unions. Legislative leaders and the state treasurer tried something different: inviting the teacher's union for a series of private talks that ended with a novel compromise. So far, everyone's happy.

Pension 'Sea Change' in New Jersey

TODAY'S TAKE: In what The Wall Street Journal called a political "sea change," New Jersey Governor Chris Christie this week signed legislation scaling back retirement benefits for government workers in the traditionally union-friendly state. The move comes as many states face stark gaps between what they have promised their employees and what they have on hand to fulfill those promises.

States Tackling Public Employee Retirement Benefits in 2010

Since legislatures convened last month, at least 16 states are weighing changes to their worker pension plans. Employees, retirees and unions say they will contest some of the proposals.

Summary of the Connecticut State of the State Address

Connecticut Governor Jodi Rell, a Republican, focused on ways to create jobs and cut the deficit in a sobering state of the state address Feb. 3. She called out the state's Democratic-controlled legislature for partisan bickering at a time when a devastating economic recession has thrown 94,000 residents out of work and caused a deep fiscal crisis.

Summary of the Delaware State of the State Address

Delaware Gov. Jack Markell (D) highlighted during his state of the state speech Jan. 20 his administration's efforts to curb state spending and promote jobs, and he promised to do more of the same.

Summary of the Indiana State of the State Address

Indiana Gov. Mitch Daniels (R) boasted during his state of the state address Jan. 19 that Indiana had weathered the recession better than almost every other state, although he still called on lawmakers to make cuts in spending without raising taxes.

Weekly Wrap: Florida's Population Shrinks

Fewer people live in the Sunshine State; which states are spending stimulus dollars too slow; Utah swears in a new governor; N.H. enacts worker protection measure.

Tracking the Recession: Buyouts Lure 9,000 State Workers Into Retirement

As layoffs and furloughs undermine the job security traditionally associated with state employment, at least six states are offering buyouts to tighten their belts without fracturing morale. But some worry this payroll-reduction technique may not save as much money as anticipated.

Seniors Seek State Help to Weather Recession

As low-income seniors cope with the recession, more are seeking help with transportation, home-delivered meals, health care and other services for the elderly. States warn that shrinking revenues will force program cuts early next year unless Congress provides more funding.

Market Slide Batters State Pension Funds

Higher contributions from employees and taxpayers may be needed to offset investment losses.

States Move to Regulate Senior Guardians

As the U.S. population ages and families scatter across the country, the frail elderly increasingly end up relying on court-appointed guardians when they can no longer take care of their personal affairs. California just joined six other states in watching over these professionals charged with protecting society's most vulnerable adults.

Price tag for state retiree benefits: $2.73 trillion

States have set aside about $2 trillion to cover the cost of pensions and health insurance promised teachers, police officers and other public-sector workers, but retiree benefits are still underfunded by about $731 billion, a new study released Tuesday (Dec. 18) shows.

States turn to seniors for help in classrooms

As baby boomers reach retirement age and begin to leave the ranks of public school teachers in droves, states are recruiting retirees from other professions to volunteer or start second careers as teachers.

States, SEC Work to Protect Elderly Investors

To prepare for the coming retirement boom, state and federal securities regulators are joining forces to protect elderly investors from predatory sales tactics and investment fraud. The new joint effort will focus on firms offering "free lunch" seminars and investor education programs.

States Urged to Curb Senior Tax Breaks

As baby boomers retire over the next two decades, the cost of income tax breaks for senior citizens -- offered in at least 40 states -- could double as a share of the budget in many capitals, a new study predicts. The mounting bill for senior tax preferences could spur states to reconsider granting tax breaks based on age.

The American Dream Collides with a European Competitor

People may question the wisdom of President Bush's drive to privatize part of Social Security. But there's no question it fits the U.S. psyche to a "t" - our perennial American Dream of every individual's right to chart a path to personal wealth.

Long-Term Care on States Short List of Priorities

States in 2005 will try to dangle enticements to get baby boomers and senior citizens to sock away money for nursing home and long-term health care costs, thus saving money for states. Look for states to prod Congress to pass a law allowing them to pool Medicaid money with private personal funds to pay for long-term care. More states plan to explore tax breaks for citizens who buy private long-term care insurance.

Southern States Brace for Effects of Aging Population

Southern governors, whose states hold the largest percentage of elderly in the nation, are looking to New York for ways to prepare for a graying population.

States Target Deceased to Recoup Nursing Home Costs

States are leaving no stone unturned in their search for ways to save money in health care not even gravestones. Georgia and Michigan are the last of the 50 states to consider estate recovery plans, in which the state seizes assets from the estates of dead patients who lived in nursing homes on the states tab.