Days after controversial email, support eroding in House for 401(k)-style public pensions
House Education Chairman
A defined pension plan is one in which an employer offers a specified pension payment on retirement predetermined by a formula based on the employee's earnings history, tenure and age instead of depending directly on a person's investment returns. A defined contribution plan depends on individual investments like (401)k programs.
Carney, a teacher, said he is not sure moving to a defined-contribution system would save the state money as some of its advocates have touted. "We just may be better off to stay with defined benefits and fully fund them."
Rep.
"We do not need to be going to defined contributions," said Nemes. "If we are building a system from scratch, let's have that conversation. We're not building a system from scratch, and it would cost a great deal more money to close down the defined-benefit plan. So I don't think we should do that."
Nemes said the House Republican caucus "is not favoring going to a defined contribution plan" and predicted that the Republican-controlled House "will maintain some form of defined benefit plan."
House Speaker Pro Tem
Asked if thinks the state should go from a defined-benefit system to a defined contribution, Osborne said, "I think once we file a bill, we will address more specifics regarding that. Until the entirety of the bill becomes public record, I will withhold comment."
Osborne said he is "hopeful" the long-awaited public pension bill will be filed this week, which will mark the halfway-point of the 2018
Osborne said no decision has been made as to whether the bill will start in the House or
Osborne also said he has not seen a one-page email high-profile business leaders and Republican activists sent to state lawmakers last Friday, urging lawmakers to end defined-pension benefits.
"I don't know if I accidentally deleted it," he said of the email that was greeted with outrage by many public employees.
The email said any pension changes made during the 2018 legislative session must include "moving all future employees from a defined-benefits system to a defined-contribution system."
Any pension bill that does not cut this benefit "willfully ignores the inherent structure problems at the heart of the crisis" and "is a disservice to the people of
Among the 19 people signing the letter were national anti-tax activist
Carney said the letter "didn't speak for me and any of my colleagues. At the end of the day, I'm not sure it helped."
Nemes said he appreciates any input but thinks the letter "came late in the process. It was not something we have not considered before."
"The letter was insulting and offensive to all public employees," said
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