US. How public sector employers are reducing their pension liabilities
Public sector employers are struggling with the same problems that private employers are when it comes to pension plans. Rising costs associated with these plans have forced many municipalities, school districts and colleges and universities to get creative with their benefits to not only save money but still attract and retain good employees.
The cost of pensions increased in more than 70% of cities, and one in three cities identified these expenses as the largest expense affecting their budgets, a 2016 survey by the National League of Cities showed.
The survey found that between 2009 and 2016, 33% of public sector employers increased employee contribution rates; 22% changed plan design; 17% reduced benefits; 12% reduced the cost of living adjustment; 8% increased eligibility requirements and 7% increased the vesting period.
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