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September 2010

State Pension Plans in Peril: The Need for Reform

by Lowell R. Ricketts

State and local government employees have long enjoyed the perk of a guaranteed pension in retirement, but that may no longer be the case — because of the recent recession, state budgets are in trouble. Many states have under-funded their pension plans to pay current expenses, and many pension plans have also incurred huge investment losses due to the financial crisis. How can states remedy this problem? The September 2010 Newsletter, "State Pension Plans in Peril: The Need for Reform," offers possible solutions.





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