Two new BOX Program podcasts offer illuminating insight into our public pension crisis and how lawmakers can help fix the broken system.
First, Matt talks with former Utah State Senator Dan Liljenquist about pension reforms enacted in Utah. Liljenquist likened the pension system to a chemical spill—the first step to addressing the problem is cap the spill, then work overtime to clean it up. Likewise, the first step to fixing the pension crisis is moving away from a defined-benefit plan to a defined-contribution plan, where taxpayer commitments are limited. Listen here.
In the second podcast, Matt talks with Mercatus Center senior research fellow Eileen Norcross about how the pension crisis affects both state and local government finances. Norcross talks about principles for reform including accurate accounting to show the true costs of pensions, and moving from defined benefit plans which have been overpromised and underfunded. Listen here.