Why Don't Some States and Localities Pay Their Required Pension Contributions?

WASHINGTON, May 15 /PRNewswire-USNewswire/ -- The Center for State and Local Government Excellence has issued its seventh issue brief on retirement plans, Why Don't Some States and Localities Pay Their Required Pension Contributions? The brief, which was written by Alicia H. Munnell, Kelly Haverstick, Jean-Pierre Aubry, and Alex Golub-Sass of the Center for Retirement Research at Boston College, finds that:

    -- Over 40 percent of plans in our sample failed to make their annual
       required contribution (ARC) in 2006.

    -- The majority of these plans faced legal constraints on their
       contributions, but many are gradually adjusting their limits.

    -- For the unconstrained plans, the following factors are associated with
       a failure to make the ARC:

       -- Degree of funding discipline -- the plan uses a less rigorous cost
          method;
       -- Size and type of plan -- the plan is large and is run by the state;
          and
       -- Fiscal health -- the plan is in a state with a relatively high debt
          burden.

For a copy of the full brief visit http://www.slge.org/index.asp?Type=B_BASIC&SEC={6B5D32FD-C99D-41F7-9691- 4F1B1D11452B}&DE={DACFD394-21D1-4707-B419-1647C6DFF1B7}%20 (Due to length of URL, please copy and paste into browser.)

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, http://www.slge.org.