The results are in: true blue Massachusetts has the worst pension system in the country. The left-leaning Urban Institute released a new ranking of pension programs in all 50 states, and Massachusetts came in last. More on the survey, via the Boston Globe:
According to the study, Massachusetts receives a “D” for it’s plan’s funding ratio, along with numerous other states. It received an “F” for making required contributions, with three other states. — New Jersey, Pennsylvania, and North Dakota […]“Over the years, they’ve dug a pretty deep funding hole, and that’s getting worse,’’ said Richard Johnson, the project’s lead researcher. Even as Massachusetts has made reforms to its pension plans, most recently in 2012, Johnson said the state still “pushes older workers out the door but doesn’t attract younger workers.’’
Two particular aspects of the Massachusetts system were highlighted. First, it does a bad job encouraging workers to delay taking retirement payments by working more years. Second, workers don’t really start to earn a pension until they have been employed by the state for ten years. This looks to us like another front in the war on the young: Boomers get to retire early in style and load the state down with debt. Meanwhile, the next generation gets stuck with that bill and misses out on ten years of pension contributions.