Pension Buy Outs. 3 Pensions. 3 outcomes.

• Philadelphia
  • The buy-out: Buy out employees in the highest plans, and put the employees back into a plan that matches current employees
  • The net effect: Cuts $1 B of $6 B of pension liabilities
• Illinois
  • ​The buy out: Buy out employees without offering reduced pension plans to comply with court ruling prohibiting pension reductions
  • The net effect: Reduce some pension liability
• Connecticut
  • ​The buy-out: Less buy-out & more funding shift. High dollar pension plans would be paid directly through the state budget and off the pension’s liability
  • The net effect: Pension liabilities are reduced via cost shift

Governing | Pension Crisis: Could Buyouts Be a Solution?