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.
Is America’s Retirement System Failing Future Retirees?
A new analysis from economist Teresa Ghilarducci and colleagues warns that without reforms, millions of Americans—especially Generation X and Millennials—face a far less secure retirement than Baby Boomers.
While some point to the relative success of the oldest Boomers—who often enjoyed defined benefit pensions, stable careers, and full Social Security benefits—researchers caution that those conditions no longer hold. Traditional pensions have sharply declined—only about 22% of Gen Xers had a pension at age 55, compared with nearly 40% of early Boomers—cutting typical retirement wealth by more than $200,000.
Other headwinds compound the problem:
- – Debt loads are higher, with more seniors carrying mortgages and student loans later in life.
- – Healthcare and long-term care costs are climbing; a typical 65-year-old man needs roughly $127,000 saved to have a 90% chance of covering medical expenses, and a woman about $143,000.
- – Longevity gains mean workers need 10–15% more savings just to maintain today’s standard of living.
Social Security remains the bedrock of retirement income; however, without congressional action, benefits are expected to be cut by approximately 20% in the mid-2030s. Ghilarducci calls this both “disastrous” and “completely avoidable,” urging Congress to raise revenue—such as by lifting the payroll tax cap—to shore up the program.
She highlights policy solutions, such as portable, universal retirement accounts backed by federal matching contributions and stronger long-term care supports. The takeaway: measuring retirement security by how early Boomers fared is dangerously misleading. Without bold, early reforms to expand savings coverage and protect Social Security, the nation risks a true retirement crisis for Generation X, Millennials, Gen Z, and future generations.
Iowa: DOGE Walks Back—But IPERS Still in the Crosshairs
At its final meeting earlier this week, Terry Lutz—chair of McClure Engineering and leader of the Iowa DOGE panel’s return-on-investment subgroup—apologized for confusion and tried to clarify two flashpoints: proposed merit pay would be delivered in the form of bonuses of up to 10% tied to student outcomes, and current IPERS benefits would remain. He also floated the idea of recurring “total rewards” reviews and offering future hires a defined contribution option—a move that would still undermine the pension system by eroding its long-term stability.
As we noted in our recent blog, the DOGE task force in Iowa was launched to “run government like a business” without any worker representation, a model that threatens proven defined-benefit pensions and ties teacher pay to standardized tests. Unions remain firmly opposed, and even GOP leaders have said they have “no interest” in changing IPERS, which is vital for recruitment, retention, and local economies. With the task force’s final report headed to Gov. Kim Reynolds on Sept. 29, we’ll keep pushing a clear principle: hands off IPERS—protect worker voice in pension governance.
Ohio Educators Sue to Protect Their Voice on STRS Board
Ohio’s three largest education unions—the Ohio Education Association, Ohio Federation of Teachers, and Ohio Conference of the American Association of University Professors—have filed a lawsuit in Franklin County Court of Common Pleas challenging a last-minute budget provision that would strip educators of their majority voice on the State Teachers Retirement System (STRS) Board.
The law, drafted by Rep. Adam Bird and backed by legislative leaders, adds four political appointees to the board by September 30, 2025, and phases out four elected seats so that by 2028, the board will have eight appointees and only three elected members. Union leaders argue the measure violates Ohio’s equal-protection guarantees and both the three-considerations and single-subject rules, since it was inserted into the budget in its final hours despite STRS receiving no direct state funding.
Worker representation on public pension boards isn’t just a matter of fairness—it’s proven good governance. Research shows boards that include employee and retiree representatives achieve stronger long-term investment performance and better oversight. For decades, Ohio’s public pensions have driven economic growth—each pension dollar generates more than a dollar in local economic activity—and educators’ voices have been key to that success.
In another important development this week, Franklin County Common Pleas Judge Andy Miller issued a preliminary order pausing implementation of the law while the case proceeds.
As Governor Mike DeWine recently noted, the STRS board has begun restoring cost-of-living adjustments and lowering service-year requirements, demonstrating how balanced governance benefits both retirees and taxpayers. Educators warn that removing their majority voice undermines that progress and threatens the democratic model that has safeguarded public pensions for generations.
The court’s pause is only temporary, but it’s a key first step in protecting educators’ right to a seat at the table and preserving the democratic model that has safeguarded public pensions for generations.
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.