Read up on the May 5 hearing on the Transparency and Funding of State and Local Pension Plans

Testimony of witnesses: http://waysandmeans.house.gov/Calendar/EventSingle.aspx?EventID=238769

Comments submitted by Conference of Consulting Actuaries’ (CCA) Public Plans Community: PPC_Response_to_PEPTA -_Final

Comments submitted by state and local government coalition:  Joint Statement for Ways Means Oversight Subcommittee Hearing 5-5-11

Hidden cost of pension reform: Freezing benefits is complex issue

The current controversy over public employee retirement benefits has produced calls for freezing traditional pensions for government workers and replacing them with a 401(k)-style retirement plan. The argument for scrapping traditional pensions for public employees is that it would be less expensive for taxpayers.

A closer analysis released by CalPERS – “The Impact of Closing the Defined Benefit Plan at CalPERS” – reveals the issue is much more complex, with higher initial and long-term conversion costs that may not produce the expected savings and may, in fact, result in higher costs for taxpayers. This means taxpayers may end up paying more for less – higher costs for lower worker benefits.