Advertise on NYTimes.com The Burden of Pensions on States

[alp227]

...new pension cost estimates, ordered before Governor Walker was elected, are coming as soon as next week. They are expected to show that the current contribution levels to the state pension system are too meager. More money, from employers and employees in some combination, will be needed, and perhaps much more in coming years.

Other states will also probably find that Wisconsin’s idea of simply dividing pension contributions between labor and management is an illusory solution to their long-term financial woes. That’s because several studies have shown that promises to workers are far more costly than routinely calculated by Wisconsin and most states.

And the problem seems unlikely to be solved by putting curbs on the collective bargaining power of state workers. Despite the arguments of some Republican governors and popular perception, the places with the most unionized work forces are not necessarily the ones with the most generous pensions, according to a new study.

Coming up with bigger contributions to pension funds will require states to make difficult choices about the size of their work forces, their commitment to public services and the viability of their employee benefits, which are often said to be irreversible and protected by state constitutions.

Full story: http://www.nytimes.com/2011/03/11/business/11pension.html?_r=1&partner=rss&emc=rss&pagewanted=all

[Lint Head]

1. My pension was frozen by my profitable multi billion dollar corporation.

[aquart]

2. Bet the exec pensions weren't frozen.