Pension debate could spur teachers, state employees to retire early

Excerpt:

While many may be talking about early retirement, few are actually driving off into the sunset in their Overland campers — yet. According to figures provided by Pearce, about the same number of people put in for retirement during the first three months of 2021 as during January, February and March of last year.

But her office did see a “significant increase,” she said, in employees asking about how much it would cost them if they purchased enough retirement credits to exit the workforce early.

Author(s): Lola Duffort

Publication Date: 11 April 2021

Publication Site: VTDigger

Early retirement offer to Massachusetts teachers wins legislative sponsors

Link: https://www.masslive.com/coronavirus/2021/02/early-retirement-offer-to-massachusetts-teachers-wins-legislative-sponsors.html

Excerpt:

A bill that would allow teachers who are eligible to retire to purchase up to five years of service, age or a combination of the two in order to make room for new teachers has been backed by state Sen. John Velis, D-Westfield, and state Rep. Carol Doherty, D-Taunton.

If approved, the bill known as “An Act to provide a retirement enhancement opportunity to members of the Massachusetts Teachers Retirement System,” would be voted on by each city or town’s School Committee before teachers in those communities would be eligible.

Author(s): Elizabeth Román

Publication Date: 18 February 2021

Publication Site: MassLive

Public Pension Roundup: Reform And Regression

Link: https://www.forbes.com/sites/ebauer/2021/02/19/public-pension-roundup-reform-and–regression/

Excerpt:

Now, generally speaking, when an employer switches from a traditional pension to a defined contribution plan, this means a significant drop in plan benefits for employees. In Florida, that’s not the case — at least nominally not so: the employer contribution rate is the same for either type of plan, and varies only by employment class. (Of course, this doesn’t take into account any additional contributions needed to remedy funded status.) In addition, regular readers will know that I insist whenever the opportunity arises that state and local employees should participate in Social Security just as much as the rest of us do; as it happens, that is already the case for public employees in Florida. In addition, unlike the 8 year vesting of the traditional pension plan, the employer contributions to the defined contribution plan vest after only a year of service.

Author(s): Elizabeth Bauer

Publication Date: 19 February 2021

Publication Site: Forbes

Lawmakers Propose Early Retirement Incentives for Public Workers

Link: https://spectrumlocalnews.com/nys/central-ny/ny-state-of-politics/2021/02/04/lawmakers-propose-early-retirement-incentives-for-public-workers

Excerpt:

Public workers in New York could have an incentive to retire early under a proposal by a pair of state lawmakers unveiled on Thursday. 

The bill backed by Sen. Peter Harckham and Assemblyman Tom Abinanti would create early retirement incentives for workers 55 and older who have 10 years of service with state or workers with 25 years of government service. A separate bill that covers early retirement for public workers in New York City was previously introduced. 

The bill comes as local government finances have been scrambled by the COVID-19 pandemic. Revenue from the sales tax, for instance, dropped 10% statewide. 

Author(s): NICK REISMAN

Publication Date: 4 February 2021

Publication Site: Spectrum News