Welcome to the latest edition of This Week in Pensions! We have gathered the best stories about pensions and retirement security from the previous week. You need to know this news in the fight for a secure retirement.
New study finds Americans fear destitution more than death.
New research from the Allianz Center for the Future of Retirement reveals that Americans are more worried about running out of money than running out of time overall–in other words, poverty scares Americans more than death. The study found that 64% of survey respondents find running out of money in retirement more concerning than death. 62% say they are not saving as much for retirement as they would like, and just over half noted that inflation contributes to their fear of running out of money.
Kelly LaVigne, vice president of consumer insights at Allianz Life, said, “With Americans living longer in retirement and facing risks like market volatility, creating a financial strategy so that your money lasts your lifetime is a daunting task.” Gen Xers had the highest level of worry at 70%, with Millennials close behind, at 66%.
Ohio’s Retirement Study Council launches nationwide comparison investigation.
The Ohio State Teachers Retirement System (STRS) has experienced considerable turmoil in the last several years, resulting in board resignations and questions about fund integrity. Now, lawmakers in the Buckeye State are moving forward with a study that will compare how all 50 states govern their teacher retirement systems.
Republican state Rep. Adam Bird announced that the Ohio Retirement Study Council will work with the National Conference of State Legislatures and consulting firm RBK to determine how Ohio’s system’s leadership compares to the rest of the country. The STRS board currently includes seven educators and four appointees, including the state superintendent, but Bird’s research will determine where STRS’s governing system can improve.
The newly established Ohio Public Pension Coalition is dedicated to protecting retirement security for Ohio’s teachers and other public servants. This coalition will work tirelessly to ensure that Ohio’s public employees can count on the pensions they’ve earned through a lifetime of public service.
Connecticut’s projected budget surplus divides lawmakers and pundits.
While many states face budget shortfalls in the wake of DOGE-related funding cuts, Connecticut is anticipating its second-largest budget surplus in state history. However, what the state plans to do with its extra cash has become a hotly contested subject among lawmakers and non-profit leaders. The surplus, which was bolstered by favorable sales tax and corporate tax boons, is expected to level out in the next two years, analysts say. Additionally, federal cuts from the current presidential administration may also eat into the rainy day fund.
“The economic policies coming out of Washington are directly impacting our state’s economic future, as evidenced by leading indicators such as consumer confidence,” said Governor Ned Lamont in a press briefing. “Over the coming weeks, I will be working with legislative leaders to pass an honestly balanced budget that protects Connecticut’s core values, provides flexibility for inevitable federal cuts, and adheres to our statutory and constitutional budget obligations.”
Connecticut has successfully paid down $8.6 billion in legacy pension debt with surplus funds in the last several years, putting the funds in a better position for the future.
Kentucky teachers fall far behind the national average for pay.
The most recent annual report from the National Education Association has reported that Kentucky ranks 42nd in the nation for average teacher salaries, down one spot from last year. This year, the average teacher’s salary in the Bluegrass state was $58,325.
“Every school district across the commonwealth faces shortages of teachers, substitutes, bus drivers, custodians, and office staff nearly every day of the school year,” said Kentucky Education Association President Eddie Campbell. “Properly investing in our teachers’ pay could help remedy this critical shortage and make Kentucky a competitive destination for educators working in our neighboring states.”
Teacher salaries not only affect staffing levels, but they also affect funding levels for the state retirement systems. Quality pay and long-term benefits, like defined benefit pensions, are the key to recruiting and retaining educators and other public employees.
Be sure to check back next Friday for the latest news 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.