Sponsors of public pensions made cuts to try to salvage their funded ratios, but this may have also hurt recruiting competitiveness. (Photo: Shutterstock)
Cuts to public pensions could be having a negative impact on governments' ability to compete with the private sector in recruiting top workers.
A brief from the Center for Retirement Research at Boston College finds that adjustments to state and local pension plans by sponsors in the wake of the financial crisis, including increasing the normal retirement age, reducing the monthly benefit that workers will receive when they retire, requiring employees to contribute more to the pension fund and reducing post-retirement cost-of-living adjustments, could be making work in the public sector less attractive to prospective employees.
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
