Public retirement associations join elected officials, state and local governments to oppose pension requirements within Puerto Rico Assistance Act.
A broad coalition including public pension advocates, state and local government associations, employer groups, and elected officials has come out against proposed federal legislation, the Puerto Rico Assistance Act of 2015 (S. 2381), because of a heavy burden the Act would place on public pensions.
Though the Act is primarily focused on unique concerns affecting Puerto Rico, it contains provisions that would impose a federal mandate on state and local government retirement systems that is not warranted and has not been requested.
The provisions included within the Act that would impact retirement systems “are conflicting, administratively burdensome and costly,” the coalition wrote to Senate Majority Leader Mitch McConnell.
Further, the groups wrote, “the provisions are not germane to the underlying legislation, nor do they protect benefits, save costs or improve retirement system funding.”
As the letter from the coalition explains, state and local government pensions have taken significant steps to strengthen their pensions and be sustainable over a long-term time horizon.
“Since 2009, every state has made changes to pension benefit levels, contribution rate structures, or both,” the letter says.
Read the coalition’s letter and review a fiscal fact sheet about state and local governments.
See also Five Years After the Great Recession, PERA Continues Progress Toward Full Funding to learn more about changes implemented by Colorado PERA since 2010.
