Jefferson City, MO – A recent News Tribune article highlighted Americans for Prosperity Missouri’s viewpoints on the need for meaningful pension reform.
The Missouri House Retirement Committee is currently discussing the approval of a “hybrid” retirement system for state employees. Under this system, the state government would pay a bit less and new employees would contribute to their retirement benefits.
The bill sponsored by Rep. Andrew Koenig would give employees more flexibility with their retirement plans and even allows the benefit to be passed along to children or to be given to charity.
Koenig’s bill still would keep the 4 percent deduction and 3 percent to the state-operated plan, and let the employee control how the other 1 percent of the deduction is handled in “a personal account, which would be similar to a 401(k), or defined contribution.”
Rachel Payton, deputy state director for the 57,000-member Americans for Prosperity-Missouri, urged lawmakers to pass the bill.
“Unfunded pension liabilities are the number one driver of state fiscal insolvency and massive debt,” she said. “Missouri is not an exception to this case.
“According to the Show-Me Institute, our state’s unfunded pension liability is more than $54 billion — roughly five times larger than the official estimate which is, itself, an incredibly daunting figure.”
Under Koenig’s proposal, she added, “Workers will enjoy greater choice, and be in a position to take a more active role in their own retirement planning.
“AFP believes that workers, not politicians, should be empowered with decision-making on how their individual pension benefits are accrued.”
Americans for Prosperity (AFP) is a nationwide organization of citizen-leaders committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and intrusiveness of government is the best way to promote individual productivity and prosperity for all Americans. For more information, visit www.americansforprosperity.org