Another Bad Pension Proposal
The Post-Gazette has a story of another reform to municipal pension plans. The plan would be to put all new municipal employees into a statewide, defined benefit pension system. So far as I can tell, the plan does nothing to address the unfunded liability for current employees, and admittedly the proposal would require some municipalities to pay more to cover an enhanced benefit plan.
More importantly, the proposal would ensure we perpetuate our public pension problems by maintaining a defined-benefit plan rather than moving to a defined contribution plan. And creating another state-wide pension system will only exacerbate the problems – created by politically-motivated manipulation of the plans – of the current state run systems.