Pensions/Employee Benefits & Actions

 

Expenditures for employee retirement plans, health insurance, and other benefits, comprise a relatively small portion of total state spending. However, as public employee demographics shift and greater segments of the public sector workforce approach retirement, many states are reexamining the financial costs of promised benefits. Gradual policy and fiscal reforms are being implemented across states to reduce the future budgetary impacts of pensions without drastically undermining the retirement security of present employees or retirees.

Staff Contact: Michael Streepey

NASBO Publications

  • State fiscal conditions in fiscal 2013 are modestly recovering in step with the slowly improving national economy. General fund spending levels are expected to increase by 2.2 percent this fiscal year, which is less than half their historical average growth rate. Signs of budget volatility have subsided compared to the years immediately following the recession, and fiscal conditions in most states reflect continued fiscal stability.
  • State fiscal conditions are continuing to improve into fiscal 2013, although many state budgets are not fully back to prerecession levels. This report finds that governors’ recommended budgets show an overall increase in both general fund expenditures and revenues in fiscal 2013. Fiscal trends indicate that while
  • State and local pension systems have received significant attention in the last few years. Changes to state pension systems have been taking place in response to the increased attention and concerns.  This brief examines a number of pension issues from a budgetary perspective. A budgetary perspective considers long term pension funding adequacy, and the financial cost of promised benefits in relation to the rest of current state spending.

Recently Released Reports