Most Americans are worried that their state and local governments won't be able to afford the pensions promised to government workers but also don't want to see services cut or taxes raised to address the problem.
Almost three-quarters of those surveyed in the latest Reason-Rupe poll say they are concerned about governments' ability to meet future pension obligations. An even larger share, 82 percent, said public employees should be required to contribute more to their retirement.
Fifty-three percent said public employees should contribute at least 50 percent of total deferrals into their pension funds, while 58 percent favor capping retirement benefits.
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The new data, published by the polling arm of Reason magazine, a libertarian publication, sheds light on how the country views mounting pension-funding crises.
The majority of respondents — 66 percent — would like new public employees enrolled in a 401(k)-style plan, and 59 percent said the same should be done with existing employees. Only 29 percent were against that idea.
Most don't want cuts to investments in education, health care and infrastructure, just as they don't want to see taxes raised to cover funding shortfalls.
But the poll suggests the country is equally sensitive to the potential toll that funding crises may have on existing retirees; 71 percent do not want to see benefits cut.
Faced with the choice of higher taxes or pension reforms, respondents' preference was clear — 81 percent said contracts should be renegotiated to reduce pension benefits, as opposed to the 16 percent that might support increased taxes to cover funding shortfalls.
The poll discounts the idea that the larger populace has a negative impression of public-sector workers. About half have a strong or somewhat favorable view of the public sector, and another 28 percent are ambivalent. Only 5 percent said they hold a "strongly negative" view of public employees.
That's in spite of the fact that a bit more than half said public employees get richer retirement benefits than those offered in the private sector.
Whatever governments do to address pension funding, the survey suggests Americans want a say — 78 percent said any proposed increases to pensions should be put to a public vote.
The survey showed Americans place a higher value on retirement and health care benefits when considering whether to take a job than any other factor, including their interest in the work and compensation.
More than two-thirds said they would take a job with lower salary in exchange for richer benefits.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
