Thursday, March 28, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, June 24, 2011
How Much Would a Fully Funded Pension System Cost?
By Selected News Articles @ 10:57 AM :: 5697 Views :: Energy, Environment, National News, Ethics

from NCPA

The condition of state and local government defined benefit pension systems in the United States has received national attention in debates over government budgets. Missing in the discussion has been an analysis of the revenue demands of the pension promises to public employees. If states and local governments are going to pay pensions under current policies, how much more revenue will need to be devoted to these systems? Robert Novy-Marx of the University of Rochester and Joshua D. Rauh of Northwestern University attempt to fill that gap by providing calculations of the increases in contributions that would be required to achieve fully funded pension systems.

  • Without policy changes, contributions to state and local pension systems in the United States would have to immediately increase by a factor of 2.5, reaching 14.2 percent of the total own-revenue generated by state and local governments (taxes, fees and charges).
  • This represents a tax increase of $1,398 per U.S. household per year, above and beyond revenue generated by expected economic growth.
  • In 13 states the necessary increases are more than $1,500 per household per year, and in five states they are more than $2,000 per household per year.
  • Shifting all new employees onto defined contribution plans and Social Security still leaves required increases at an average of $1,223 per household.
  • Even with a hard freeze of all benefits at today's levels, contributions still have to rise by more than $800 per U.S. household to achieve full funding in 30 years.

Source: Robert Novy-Marx and Joshua D. Rauh, "The Revenue Demands of Public Employee Pension Promises," Northwestern University, June 2011.

For text: http://kellogg.northwestern.edu/faculty/rauh/research/RDPEPP.pdf

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT