Local Government Closes Pension Loophole on Transfer of Pension to 401K

What loophole closed? the city allowed employees who transferred from the pension plan to a 401(k) style plan to get credit for the present-day value of future pension benefits, regardless of whether the employee had worked the five-year minimum needed to actually be eligible for securing a pension.

What city had this loophole? Jacksonville, FL

The new 401K transfer policy:  employees with less than five years of service move from the pension plan to a 401(k) style plan, the city will only transfer the amount of money the employees contributed from their paychecks.

Jacksonville Florida Times Union | Pension board enacts new policy to close costly loophole