EconFree on Mar 1, 2012
With a public pension crisis looming, what should we do? Tweaking isn't enough: it's time for reform.
In our previous video, Scott Beaulier explained the dire situation public pensions are now facing with a spending gap of $6-7 trillion. Watch as he delves further into the crisis and explains how we can reform the system.
"So, where do we go from here, what do we do? I think the answer is pretty clear: more of these pension plans across the states need to be shifted out of defined benefit and into defined contribution models… The appeal of defined contribution is that you own your own investment account. But in addition to that, it's predictable, it's not based on rising health care costs, it's not based on people living longer, it's just a promise that you make to pay a certain amount per month into these plans. It's simple math." -- Scott Beaulier
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