Despite a significant increase in the amount of money being put into state retirement coffers, Massachusetts still faces a huge shortfall in plan funding, according to the Boston Herald.
The state will be adding $538 million in contributions to the system this year, ups from $465 million in 2011. All totaled, the state government paid state retirees $1.495 billion in total benefits last year, itself a significant jump from the $1.224 billion paid three years earlier.
Pension reform passed in both the Massachusetts House and Senate in 2011 and went into effect in April, increasing the minimum age for new hires and preventing pre-retirees from "spiking" their income in their final years of employment to boost their benefits.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
