Why U.S. States Need Pension Waiver Credits
40 S. Ill. U. L. J. 203 (2016); Mississippi College School of Law Research Paper No. 2016
Posted: 30 Sep 2015 Last revised: 30 Aug 2018
Date Written: September 29, 2015
This article identifies a novel approach to public pension reform, which takes into account existing political and legal constraints. It does its work in four key ways. First, the article encourages better use of public sector resources by calling for the elimination of public pension inefficiencies. Next, it explains how to reduce public pension inefficiencies, on a prospective basis, by moving away from defined-benefit pension plans. Third, the article describes one way to move beyond defined-benefit pension plans through the creation of a new tax expenditure program (specifically, a Pension Waiver Credits Program). Finally, it explains how to implement this new tax expenditure program: so that U.S. states may partially address their public pension issues.
Keywords: Local Government Law, Contracts, Pre-Existing Duty Rule, Fresh Consideration Dilemma, Public Pensions, Law & Economics
Suggested Citation: Suggested Citation