PolicyBlog has moved!

Thank you for visiting, PolicyBlog has a new address.

Our new location is http://www.commonwealthfoundation.org/policyblog

Please adjust your bookmarks. Archived posts will remain here for now.


Sunday, February 15, 2009

Philadelphia's Pension Non-Reform

Philadelphia Mayor Michael Nutter is proposing addressing the city's unfunded pension liability by, essentially, not paying as much as the city should (HT GrassrootsPA).

Like Pennsylvania's state pension plans, many local government pensions (Philadelphia among them) are facing major problems, due to historical underfunding, recent investment losses, and politicizing of the pension system.  But the mayor's proposal to pay off the liability over 40 years, instead of 30, is simply more politicizing - passing the higher cost on to future generations (and future mayors).

However, Philadelphia (along with other local governments and the state) would benefit a reform like the "Unified Contribution Pension Plan".

No comments: