Tag: Vermont

Vermont Treasurer Calls for Pension Cuts for State Employees, Teachers

Mary Pat Campbell

Link: https://www.ai-cio.com/news/vermont-treasurer-calls-pension-cuts-state-employees-teachers/

Excerpt:

Vermont Treasurer Beth Pearce released a report containing recommendations that she said could reduce pension UAAL for the Vermont State Employees’ Retirement System (VSERS) and the Vermont State Teachers’ Retirement System (VSTRS) by $474 million and reduce the actuarial determined employer contribution (ADEC) by $85 million.

“While shy of the total target of $604 million in the UAAL and $96.6 million for the ADEC, it is a significant reduction to the existing liabilities and costs to the taxpayer,” said the report, which added that the net other post-employment liabilities could be reduced by $1.68 billion by directing a “minimal amount” of funds for prefunding. “All in, these recommendations will reduce the state’s post-employment liabilities by $2.2 billion.”

Author(s): Michael Katz

Publication Date: 21 January 2021

Publication Site: ai-CIO

States Are Finally Going Bold with Progressive Tax Efforts

Mary Pat Campbell
States Are Finally Going Bold with Progressive Tax Efforts

Excerpt:

As the COVID-19 pandemic began, and again as 2020 drew to a close, we repeated our hope that these trying times would awaken and embolden state leaders to enact lasting solutions to emergent and long-standing needs in their states. Lawmakers in New Jersey and voters in Arizona helped set an example by taking progressive action in 2020.

…..

Thought leaders in Connecticut are making waves with progressive revenue solutions of their own. Connecticut Voices for Children released a major report in December, highlighting several tax policy options with the potential to “ensure that Connecticut’s tax system works to advance economic justice rather than continue to contribute to economic injustice.” Those options include: income tax increases on households with incomes over $500,000 ($1 million for couples) that could raise $504 million to $1.72 billion per year; estate tax improvements to reverse cuts and raise $108-162 million per year; a surcharge on capital gains and other similar income to raise $167-334 million per year; and a mansion tax on homes valued over $1.5 million that could raise $331-663 million. These ideas are already being reflected in bills to be considered by lawmakers this year.

Author(s): Dylan Grundman O’Neill

Publication Date: 4 February 2021

Publication Site: Institute on Taxation and Economic Policy

Don Turner: 5 steps to fix the pension mess

Mary Pat Campbell

Link: https://www.benningtonbanner.com/opinion/columnists/don-turner-5-steps-to-fix-the-pension-mess/article_40469846-6197-11eb-a065-17b12b65db5b.html

Excerpt:

2021 marks 25-years since then-Treasurer Jim Douglas recommended that the state change its trajectory from costly “defined benefit” retirement plans for state employees and teachers to “defined contribution” plans. Eleven years ago, in 2009, a special commission suggested a consideration of this same idea. I have previously written about our pressing need to consider a defined contribution option, as well as the “sleeping giant” of our unfunded liabilities.

Unfortunately, since the time I wrote my opeds in 2019, Vermont’s unfunded liabilities have ballooned from $4.5 billion to more than $5 billion.

Author: Don Turner

Publication Date: 28 January 2021

Publication Site: Bennington Banner