October 30, 2014

Report advises against pension plan changes

A new report recommends against making any major changes to the state pension system. The study done by an independent consulting actuary examined the strength of the Wisconsin Retirement System, and looked at the benefits of implementing either a defined-contribution plan or allowing state employees to opt-out.

The report concludes that the WRS is stable and highly funded in its current form and recommends against making those changes. It notes that a different type of plan could lead to decreased benefits and increased costs for both workers and taxpayers.

The findings back up a recent Pew Center on the States study released in June, which found Wisconsin was the only state in the country with a fully funded pensions system capable of meeting its current obligations.

Governor Scott Walker says the report confirms that taxpayers and pensioners are getting a great deal through the WRS. While Walker says he’s not planning any substantial changes, he does want to make sure the system remains fiscally sustainable.