Better Bang for the Buck
The National Institute on Retirement Security recently published a report entitled "Still a Better Bang for the Buck: An Update on the Economic Efficiencies of Defined Benefit Pensions" which outlines the inherent cost-efficiencies of defined benefit plans.
The report highlights how responsibly run pension plans are able to provide equivalent benefits to a typical deferred compensation plan at half the cost, and equivalent benefits to even an "ideal" deferred compensation plan at 29% less cost.
WRS encourages all our members and stakeholders to read the report and inform themselves on this issue.
Download and read the report here (pdf)...
Excerpt From "Still a Better Bang for the Buck:"
"Over the past three decades, private employers have shifted
away from defined benefit (DB) pensions that provide
employees with a steady retirement income stream, towards
defined contribution (DC) retirement accounts—such as
401(k) plans—in which individual workers manage their own
investments. Since the 2008 financial crisis, public employers
have faced pressures to make a similar change.
However, DB plans are inherently more cost-efficient than
DC plans."continue reading...
Wyoming Retirement System's pension plans are defined benefit plans that provide a predictable monthly paycheck in retirement that cannot be outlived.
The WRS Board believes, and passed a resolution affirming, that a defined benefit plan supplemented by the 457 Plan is the best way to provide retirement benefits for the public employees of Wyoming. In Wyoming, this requires a partnership with State policymakers to prudently manage the associated risks and provide promised benefits.
Wyoming Retirement System Summary 2016
The Wyoming Retirement System Summary 2016 gives an overview of WRS' structure, provides information on the makeup of WRS' membership and participating employers, outlines the benefits WRS provides and their economic impacts on Wyoming, and more.
Download the WRS Summary 2016 (pdf)...
National Organizations Submit Joint Comments on Public Pensions to Senate Finance Committee
Eighteen national organizations representing state and local governments, elected and appointed officials, public employees, and public retirement systems collectively submitted comments to the Senate Finance Committee’s Tax Reform Working Group on Savings & Investment. The letter was in response to a request for public input by the Chairman of the Senate Finance Committee, Orrin Hatch (R-UT), and the ranking Democrat on the Committee, Senator Ron Wyden (D-OR), as part of their bipartisan effort to help advance comprehensive tax reform efforts in the 114th Congress.
In their letter, the national associations urged the Crapo-Brown Working Group to ensure that any changes to the Federal tax code in the area of savings and investment continue to support the ability of state and local governments to successfully design, invest, finance, and manage their public employee retirement systems without unnecessary Federal mandates or other undue interference.
The groups noted that state and local governments have been successful in making changes since the Great Recession to put their pensions on a sustainable path, and that none of these reform efforts has required Federal intervention. The groups also stressed that any changes to Federal tax policy “should support the elements of public plan design necessary to meet their diverse workforce goals, and recognize the distinctive characteristics of state and local governments when considering legislative changes that may affect their primary and supplemental retirement vehicles.”
Read the full letter here (pdf)...