LEGE TREND. 2 Costly Pension Fixes. Long Term Costs > Short Term Benefits

• Removing Higher Ed from State Pension Systems
  • Univeristy Presidents in Kentucky want out because pension costs are increasing tuition.
  • Universities want out without immediately paying off their pension liabilities
  •  Universities want 25 years to pay down state pension liabilities
  • Universities would offer other retirement options for their employees, such as a 401(k)
  • Opponents say the solvency of the pension system is at risk
• Defer Pension Liability Payments
  • Illinois Governor is proposing a 7 year deferral
  • Opponents say Illinois could be the “first state in the modern era to be downgraded to junk status.”

Governing | The Drastic, Risky, Measures to Fix America’s Brokest Pension Systems