Hawaii working to plug the gap in retirement benefits
Years of borrowing from the state's employee retirement fund has left Hawaii $7.1 billion short of its current responsibilities to public workers KITV-TV reports. That has left the state legislature scrambling to find new ways to fund the Employee Retirement System.
According to KITV, Hawaii Governor Neil Abercrombie and the ERS have announced new regulations that will infuse approximately $40 million of taxpayer contributions into the fund in 2011 and 2012. To offset future deficits, public employees hired after after July 1, 2012 will receive fewer benefits.
The decision has drawn the ire of public unions, including those representing firefighters and university professors, which state the new contribution laws could adversely affect future hiring. Additionally, the state will increase the retirement age from 55 to 60 years old for the majority of public employees.
Arkansas lawmakers are also taking measures to offset pension deficit growth. According to the Arkansas Democrat Gazette, the state's legislature voted 86-4 to uphold the law which restricts public employees from simultaneously receiving state salaries and state retirement benefits. The current law mandates workers end their employment before receiving their pensions.
According to KITV, Hawaii Governor Neil Abercrombie and the ERS have announced new regulations that will infuse approximately $40 million of taxpayer contributions into the fund in 2011 and 2012. To offset future deficits, public employees hired after after July 1, 2012 will receive fewer benefits.
The decision has drawn the ire of public unions, including those representing firefighters and university professors, which state the new contribution laws could adversely affect future hiring. Additionally, the state will increase the retirement age from 55 to 60 years old for the majority of public employees.
Arkansas lawmakers are also taking measures to offset pension deficit growth. According to the Arkansas Democrat Gazette, the state's legislature voted 86-4 to uphold the law which restricts public employees from simultaneously receiving state salaries and state retirement benefits. The current law mandates workers end their employment before receiving their pensions.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.