Most retirement plans operate on the simple equation that contributions plus investment earnings equals benefits plus expenses. Stated differently, over the long run, the money that is paid out of a retirement plan must equal the money taken in.
What happens when this is not the case? For example, what happens when the number of those receiving a pension benefit far exceeds the number who are working and contributing, and the pension plan is paying out in benefits far more than it is receiving in contributions? Read more
Last week, Public Sector Inc. hosted a fair, honest debate between Keith Brainard, research director at NASRA, and Jason Richwine, senior policy analyst at the Heritage Foundation. Their topic was, “Are public pension systems on the road to recovery?”
To this question Messrs. Richwine and Brainard concurred that public pensions are indeed recovering from the Great Recession — and it was the only thing they did agree upon. Read more