An analysis of why current public sector pension accounting standards understate liabilities and encourage excessive risk-taking

Shifting government workers to 401(k)-style plans would offer greater transparency and keep benefits in line with the private economy.

The recent improvement in payrolls and the unemployment rate are welcome news, but the plight of the long-term unemployed in the United States is considerable. The policies that have been executed since mid-2008 to foster an economic recovery have failed to deliver measurable results, and those most hurt by the current downturn are often the long-term unemployed.

What does 2012 hold, both in terms of policy and politics, for the developing relationship between public-sector workers and taxpayers? What does a proactive reform agenda for 2012 look like? Is a pro-reform platform a winning issue for reformers or their opponents? This event will address these and other questions in two panel discussions.

Nebraska's CB plans are innovative and could be a model for other states to follow as they try and bring their budgets and pensions under control. Yet there are other, more transparent and taxpayer-friendly ways Nebraska could construct the pension system.

Current pension accounting rules significantly understate state pension plan liabilities and overstate their funding health. Using accurate accounting, Washington’s combined plans would face a $50.6 billion short fall. By private pension standards Washington’s pension system would be considered endangered.

Senator Whitehouse, Ranking Member Enzi, and members of the committee, thank you for the opportunity to participate in this very important hearing on health care delivery system reform.