Author Of New Public Pension Reform Report Says Radical Changes Needed To Protect Taxpayers

By Sean Whaley / Nevada News Bureau
Scott Beaulier is no fan of states borrowing money, but in his new working paper on transitioning public pensions to 401(k) style plans to reduce taxpayer liabilities to pay retirement benefits, the Troy University professor says it is an option worth considering.

In his paper “From Defined Benefit to Defined Contribution” for the Mercatus Center at George Washington University, Beaulier said the benefits of paying the upfront costs of transitioning pension plans from defined benefit, where employees are guaranteed a set amount at retirement, to defined contribution, where employees are responsible for their investment choices, outweigh the disadvantages.

“The borrowing should be one-time, and it should total the present value of all future payments owed to all retirees who do not transition to the 401(k) system,” Beaulier said in his report released earlier this week. Go here for the full story, including several audio clips.