Have any US states managed to move their public pensions to a 401k-like system?

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The Politicus
Jun 14, 2021 06:03 AM 0 Answers
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One can find numerous discussions of switching public pensions to a 401-like plan:

Reform has been the hot topic in the world of public employee retirement plans for years. Too often the conversation immediately turns to tossing out defined benefit pensions for government workers and replacing them with individual investment accounts like 401(k)s. Supporters of the 401(k) approach say these plans are a better fit for the modern worker; they are always fully funded; they give workers control over their own money; the public sector should follow the private sector's lead in eliminating pension plans.

I'm also seeing news of Texas trying to pass such a law but it didn't come into force yet:

Senate Bill 321 would enroll new state workers hired after Sept. 1, 2022 in a cash balance plan — similar to a common 401(k) retirement account — rather than the traditional defined benefit pension plan. The bill now heads to the Texas House for consideration.

Are there states that managed to move all (or a big chunk of) their state employees to a 401k-like plan? Or perhaps many states do and there's a ranking of states based on how many of their employees are in a 401k plan?

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  • June 14, 2021