Our State Worker column this week highlights a new report that concludes public employees brought in under last year’s cheaper pension formulas must work up to five years longer or save thousands of dollars each year to have the same retirement income as workers under older, more generous pension plans.
Here’s the CalPERS report that underpinned the column and a companion report that concludes lower pension benefits for new hires will pressure employers to offer better pay to recruit future workers.
The Emerging Role of Defined Contribution Plans for California Public Employees
California Public Employee Retirement Benefits— Assessing Compensation Changes
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