States scaling back workers pensions to save money
States around the country are cutting pension benefits for future and current workers in an effort to cut costs. Changes to the pension systems include new plans altogether, but also higher employee contributions and retirement ages. According to reports, 43 states have increased the costs of pensions since 2009. States say that their current plans are not sustainable, and changes need to be made. Workers, especially current employees, say that they depend on their pensions, and in many cases take lower salaries in return for better benefits.
See "States scaling back workers pensions to save money", Melinda Deslatte, Business Week, May 1, 2012