Dallas Morning News Commentary: Four Things Pension Systems Should Do
January 13, 2017
The Dallas Morning News published a commentary this week by University of Texas accounting professor Michael Granof that provides a balanced perspective on the challenges faced by public employee pension systems.
“It is tempting to use Dallas’ pension debacle as a case in point as to why governments should eliminate their current plans that promise a defined benefit upon retirement and switch to 401(k) or comparable defined contribution plans favored by most businesses,” Granof writes. “This would be a mistake, as an overwhelming percentage of private sector employees with 401(k) plans are fiscally ill-prepared for retirement. Public employees typically work for lower wages than their private sector counterparts in exchange for a promise of a more financially secure future. With a few common-sense changes, governments can avoid having to renege on that pledge.”
TPEA appreciates The Dallas Morning News’ publication of Granof’s commentary. The Texas Legislature has, almost without exception, taken a prudent, conservative approach like that proposed by Granof in terms of its stewardship of the Employees Retirement System pension fund, thus avoiding the crises faced by some other state and municipal funds.
Read the full commentary here.