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x posted from NC forum: is the GOP planning on changing the state retirement plan?
I guess the GOP wants to lose this next election. changing the state retirement plan.
House Democratic Leader Larry Hall called a press conference Thursday to tell reporters that a Republican “secret society” is planning sweeping changes to the state employee retirement system.
Hall said he’s heard that legislative leaders plan to switch to a defined contribution retirement system, either as part of the state budget deal or a separate bill this session.
But both House Speaker Tim Moore and Senate leader Phil Berger said Thursday that the claims aren’t true.
“People have been talking for years about changing the retirement system to a defined contribution as opposed to a defined benefit plan,” Berger told The News & Observer shortly after Hall’s press conference. “I think people probably are still talking about that, but there’s nothing in the budget about that. I don’t see anything happening this session about it.”
Moore also said no changes are afoot. “The House wanted to maintain the current system we have, and there will be no change to that this year,” he told reporters.
State employees currently have a defined benefit plan that calculates retirement benefits based on their years of employment and their salary. A defined contribution plan – common in the private sector – would make set contributions for each employee to an investment fund, with benefits that vary based on how well the investment fund performs. Examples of defined contribution plans are 401(k) plans in which a portion of the employees’ contributions are matched by the employer.
A switch to defined contribution could reduce the state’s retirement costs, but it could also mean less generous benefits for retirees.
not sure if this is believable … this Dem could be just stirring the pot. getting some press on something that
isn't there.
when I worked for DOC this "rumor" made its way around every couple of years no matter if it was
Dems or GOP running things …
Read more here: http://www.charlotteobserver.com/news/politics-government/article34711191.html#storylink=cpy