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Vermont's Pension Task Force Issues Final Report
Vermont's Pension Benefits, Design, and Funding Task Force issued its final report on January 10, endorsing a package of recommendations and setting the stage for legislative action.
Vermont's Pension Task Force Issues Final Report
Vermont's Pension Benefits, Design, and Funding Task Force issued its final report on January 10, endorsing a package of recommendations and setting the stage for legislative action.
The report culminated 18 meetings and public hearings that were conducted between July 2021 and January 2022 to collect stakeholder feedback about addressing unfunded liabilities. The funded ratios of the separate pension plans for state employees and teachers had declined at the end of fiscal year 2021 to 67.6% and 52.9%, respectively, versus 94.1% and 80.9% at the end of fiscal year 2008.
The task force recommended committing $200 million for one-time appropriations to reduce unfunded liabilities—$75 million for the state employees' plan and $125 million for the teachers' plan. They also proposed earmarking 50% of revenue surpluses in the state's general fund to be evenly split between the two pension plans.
The next steps are for the reform plan to be crafted into a bill, which would initially be considered by the Senate Government Operations committee.
The legislature formed the task force in April after a public pension overhaul bill attracted a strong backlash from teachers and employees, including public demonstrations in opposition. The new proposal was crafted by a task force consisting of lawmakers and representatives from the Vermont chapter of the National Education Association, the Vermont State Employees Association, and the Vermont Troopers Association.
The deal before lawmakers now keeps the retirement age for teachers as is, and it preserves a cost-of-living adjustment. Steve Howard, the executive director of the VSEA, told the news website VTDigger that the deal eliminates changes to the pension that would require the union's members to work longer for a less secure retirement. Another key win, according to Howard, is the panel promised to look into creating a new pension benefit group for staff at the Department of Corrections, which is facing unprecedented levels of turnover. Vermont State Treasurer Beth Pearce would have to find a cost-neutral way to pay for it by April 15.
You may also like: Vermont Task Force Preparing To Issue Final Report; City Of Milwaukee's Pension System Task Force Identifies 12 Ideas To Address Financial Challenges.
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