Legal Constraints On Changes In State And Local Pensions

New Center for Excellence issue brief

WASHINGTON, Aug. 6, 2012 /PRNewswire-USNewswire/ -- A new issue brief from the Center for State and Local Government Excellence, Legal Constraints on Changes in State and Local Pensions, describes existing legal protections for pensions and reviews recent court decisions that have separated core benefit accruals from cost of living adjustments (COLAs).

Written by Alicia H. Munnell and Laura Quinby of the Center for Retirement Research at Boston College, the brief's key findings include:

• Most states are legally constrained from reducing future benefits for current workers.
• These constraints make it difficult to adjust to changing conditions and to share the burdens of reform fairly between new and current participants.
• The legal boundaries for pension benefits are typically defined under a contracts-based approach rather than a constitutional provision.

Read the full brief at http://slge.org/publications/legal-constraints-on-changes-in-state-and-local-pensions

Access all Center retirement research at http://slge.org/research/retirement

About the Center for State and Local Government Excellence
The Center for State and Local Government Excellence helps state and local governments become knowledgeable and competitive employers so they can attract and retain a talented and committed workforce. The Center identifies best practices and conducts research on competitive employment practices, workforce development, pensions, retiree health security, and financial planning. The Center also brings state and local leaders together with respected researchers and features the latest demographic data on the aging workforce, research studies, and news on health care, recruitment, and succession planning on its website, www.slge.org.

SOURCE Center for State and Local Government Excellence