Echoing what the Peak has been writing for at least six months, Independence Institute’s Senior Fellow in Fiscal Policy, Barry Poulson, is now joining those who are sounding the alarm about the poor state of Colorado’s public employee retirement plan. From his recent op-ed to the Colorado Springs Gazette:
There is no other pension plan in the country that imposes such a financial burden on future taxpayers. Every household in Colorado would have to pay $1,739 more in taxes annually, just to meet pension obligations.
In states such as Colorado only a hard freeze will generate revenue savings in the pension plan. In a hard freeze all employees, including current employees, are required to enroll in a defined contribution plan; all future benefits in the defined benefit plan are terminated. The benefits already earned by current employees and retirees in the defined benefit plan are fully funded, and Social Security benefits are extended to all employees.