Welcome to the latest edition of This Week in Pensions! We have gathered the top stories about pensions and retirement security from the previous week.
NPPC Highlight
Earlier this week, NPPC hosted its first-ever webinar featuring Executive Director Kendal Killian and special guests, who shared valuable insights on the latest pension legislation from across the country.
Catch up by reading our latest blog on the key takeaways—or watch the full recording to hear the conversation firsthand.
Budget Standoff in New Hampshire Centers on First Responder Pensions
New Hampshire narrowly avoided a government shutdown this week as lawmakers passed a last-minute compromise budget—along with a separate bill restoring pension benefits for the state’s first responders. The dramatic vote followed weeks of uncertainty and a veto threat from Governor Kelly Ayotte over pension changes made in earlier drafts of the budget.
At the center of the dispute was Ayotte’s proposal to restore retirement benefits for about 1,500 Group II employees—police officers, firefighters, and corrections officers—whose pensions were cut in 2011. Her original plan was altered late in the budget process, drawing backlash from public safety advocates and prompting Ayotte to demand a fix or threaten a veto.
In a chaotic day at the State House, the budget initially failed in the House by a single vote before Republican leaders secured just enough support to pass both the budget and its companion bills.
The final pension compromise raises the annual retirement cap for affected first responders from $120,000 to $145,000 and bases benefit calculations on the five highest-earning years, instead of three.
“We are incredibly grateful to Governor Ayotte for her leadership and unwavering support of our firefighters,” said Brian Ryll, president of the Professional Fire Fighters of New Hampshire. “Her advocacy in reaching a deal on retirement restoration is a meaningful step forward for those who risk their lives every day to protect our communities.”
Michigan Corrections Officers Still Waiting as Staffing Crisis Deepens
Michigan’s corrections system is reaching a breaking point, with mandatory overtime and exhausting schedules pushing prison staff to the edge. Officers are working 16-hour shifts and up to six days a week—missing milestones with their families and quietly battling burnout, anxiety, and depression.
As one father shared, “I’m missing their childhood but for them, it’s all they have ever known, and that’s not OK.”
The crisis is particularly painful given that legislation aimed at improving retention and recruitment—House Bills 4655, 4666, and 4667—remains stalled. These bills would allow corrections officers to join the hybrid pension plan already offered to state police. Despite passing both chambers in 2024’s lame duck session, the bills were never sent to the governor’s desk and remain in limbo.
Meaningful retirement security could help recruit and retain desperately needed staff. Until then, Michigan corrections officers are being asked to sacrifice their health and family lives while the state delays real reform.
Wisconsin and Illinois Face Alarming Workforce Declines—One Is Taking Action
States across the Midwest are grappling with shrinking workforces and aging populations—but the severity of the crisis is especially clear in Illinois and Wisconsin.
New U.S. Census data shows Illinois is in the midst of a demographic freefall. From 2020 to 2024, the state suffered the worst decline in youth under 18 nationwide, a 6% drop. It also experienced the sixth-worst decline in working-age residents, with 146,000 fewer people aged 18–64, while its senior population grew by 225,000. Combined, these trends point to a worsening cycle of taxpayer loss, economic strain, and mounting pension obligations.
Meanwhile, just north in Wisconsin, the state is trying to get ahead of a similar problem. A new bill passed by the Republican-led Assembly would create a talent recruitment grant program to attract out-of-state workers. The initiative aims to help cities and towns lure households earning over $55,000 to fill workforce gaps in sectors such as health care, education, manufacturing, and agriculture. While the bill currently lacks guaranteed funding, it reflects a proactive attempt to reverse troubling labor trends.
“Wisconsin needs to do everything it can to address our workforce shortage and demographic changes,” said Rep. David Armstrong, one of the bill’s sponsors.
With a projected population decline of nearly 200,000 by 2050, Wisconsin is hoping these recruitment incentives will help bolster its labor force before it faces the deeper declines Illinois is already seeing.
Other states, like Oklahoma and Indiana, have seen success with similar programs. Whether Wisconsin’s plan receives funding—and works as intended—remains to be seen. But as Illinois continues to lose young residents and working-age adults, Wisconsin is taking early steps to confront the crisis head-on.
Be sure to check back next Friday for the latest in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.