…. Overall, state and local pensions are about 77 percent funded -- meaning that the value of plan assets is enough to cover 77 percent of promised benefits. But there is wide variation among plans. Illinois's plans, for instance, are a little less than 50 percent funded. The plans in Connecticut, Kentucky and Louisiana are under 60 percent. And some plans administered by cash-strapped cities and localities are in dire straits. "Even the worst-funded states aren't in immediate danger of not being able to make pension payments," says David Draine, a senior researcher at the Pew Center on the States. …. Rhode Island set the precedent last November for the most comprehensive makeover yet. Its new hybrid retirement plan will be part traditional defined-benefit pension and part 401(k)-style savings plan, with employees required to contribute at least 5 percent of their salaries to the new savings component.
Retirement: Public pensions get an overhaul - chicagotribune.com
Tuesday, February 21, 2012
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