July 24, 2010, Fremont News-Messenger
BY JESSICA ALAIMO
Special to the News-Messenger
The good news first: We’re all living longer.
The bad: It’s costing the state and local governments a ton of money.
Since the average person spends many more years in retirement than in years past, there is a looming question of how to pay for it.
Most private sector employers have responded by dropping the traditional pension plan in favor of a 401(k) system, in addition to Social Security benefits. However, public employees still pay a determined amount into one of Ohio’s five public pension funds throughout their working careers. Then, they are guaranteed a pension for the rest of their life, the amount based on their earnings and years in public service.
That guarantee comes at a price — one that cash-poor state and local governments are struggling to pay for. Unless substantial changes aren’t made to Ohio’s pension systems, the funds will need to come from somewhere.
For taxpayers, that could mean fewer government services, higher taxes or both. For retirees, it could mean working longer before they are eligible to retire, and lower payouts when they do.
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