FINANCIAL TIMES: …The bill is designed to save the state $160bn over 30 years by raising retirement ages, limiting the portion of salaries on which pensions are based, and reducing or suspending cost-of-living increases for retirees. The benefit cuts would immediately reduce the state’s unfunded liability by 21 per cent to $79bn.
It will also address the main driver of the pension crisis by requiring the state to make its pension contributions. The state has for years paid less than was due or altogether skipped payments even as workers paid their share.
Business groups strongly supported the legislation, which was brokered by the Democratic majority leaders in both legislative chambers and their Republican counterparts… (more)
