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July 11, 2007

Pension reforms have not yet cut taxpayer costs

Did the so-called reforms of two years ago actually cut taxpayer costs for public employee pensions? Not yet.

State officials were shocked to learn that the unfunded liability actually grew by nearly $500 million based on numbers presented today at the state Retirement Board meeting.

Cities and towns alone will be forced to pay an additional $20 million to the state system in the fiscal year beginning July 1, 2008. State taxpayers will make up an additional $25 million.

The contributions were not expected to grow following the pension reforms passed by the General Assembly in 2005. State officials attribute the higher costs to retirees living longer than actuaries believed.

-- Steve Peoples of the Journal State House Bureau

Posted by Mike McKinney  at 5:43 PM | Permalink

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