Defined benefit pension plans are not inherently problematic. - TopicsExpress

Defined benefit pension plans are not inherently problematic. Issues arise when legislators consistently fail to pay the state’s required contribution into the system, which is exactly what happened in in Pennsylvania. In the 1990’s, when the stock market was booming, Pennsylvania’s pension funds were performing beautifully. In 2000, the Teacher’s Retirement System was funded at an astounding 123 percent. A few years later, the stock market crashed. At exactly the time when we should have been putting more money into the system to balance investment losses, legislators let the state and school districts slash their pension contributions for 10 years — creating the debt problems that we have today. Read more here: centredaily/2015/01/12/4550469_their-view-false-savings-the-myth.html?sp=%2F99%2F145%2F&rh=1#storylink=cpy

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