Welcome to the latest edition of This Week in Pensions! We have gathered the best stories about pensions and retirement security from the previous week. You need to know this news in the fight for a secure retirement.
No retirement crisis? One “expert” says we just have to be grateful.
Andrew Biggs, pension opponent and senior fellow at the right-wing “think tank” American Enterprise Institute, thinks that the experts, media, lawmakers, and retirees are all wrong about Americans’ retirement shortfall. In his new book “The Real Retirement Crisis: Why (Almost) Everything You Know About the U.S. Retirement System Is Wrong,” Biggs presents the idea that working Americans are saving record amounts of retirement money, and that poverty rates among retirees are exaggerated by misinformation.
Biggs writes that the “multitrillion-dollar unfunded liabilities of government retirement plans, which range from the federal Social Security program to pensions for schoolteachers and local government employees,” are the real cause for concern. “By the conventional measures, there’s no reason to think that today’s workers will face a retirement crisis,” Biggs told MarketWatch in an interview.
In his bogus book, Biggs claims that people work later in life because they want to, not because they need to. His dangerous rhetoric is in direct contrast to report after report that working-class Americans face a retirement crisis with seemingly no end in sight.
Alaska state employees’ income is inadequate, study says.
A new study commissioned by the Governor’s office in Alaska found that more than 30% of public employees earn less than the 50th market percentile compared to private sector employers. At the 65th percentile mark, the number of underpaid state workers bumps up to 57%. The state has historically utilized the 65th percentile median benchmark to keep wages competitive, but Governor Dunleavy requested the study include the lower percentile, a move that has labor unions on edge. The Alaska State Employees Association (ASEA) has filed a lawsuit to obtain all drafts of the study.
“While the release of the study is a step in the right direction, our lawsuit is still very much alive,” said Heidi Drygas, director of ASEA. “It’s essential the State release all drafts of the study, as required by statute, for full public transparency.”
As the state decides what to do with its underpaid public workforce, state agencies are still facing a 17% vacancy rate.
Kidnapped Michigan bills from 2024 remain in limbo.
After a contentious lame-duck session, nine bills, including measures to expand eligibility for the State Police Retirement System to correctional officers and increase the amount public employers have to pay towards employees’ health insurance, have yet to land on Governor Whitmer’s desk to be signed into law.
The Michigan Supreme Court has now directed the Michigan Court of Appeals to “expedite its consideration and resolution of this case,” nearly two months after Senate Democrats filed a lawsuit to facilitate the enactment of the held-up bills. GOP House Speaker Matt Hall has refused to hand over the bills on the grounds that an initial Court of Claims hearing ruled that while the state Constitution dictates that the bills must be forwarded to the governor, it does not identify exactly who is responsible for carrying out the transfer.
Senate Majority Leader Winnie Brinks said, “We have pursued every legal avenue to expedite this suit and match the urgency of this relief being illegally withheld from Michigan workers.” She goes on, “The most rapid resolution lies in the hands of Speaker Matt Hall and the House Republicans. Until they rightfully deliver these bills, we will keep fighting for Michiganders, the institution of the Legislature, and the integrity of the Constitution.”
Federal cuts are affecting Oklahoma’s response to wildfires, Gov. sacks Forestry Director anyway.
The backlash following the firing of Oklahoma Forestry Services Director Mark Goeller continues to rage, and now several Lincoln County fire chiefs have penned an open letter to Governor Kevin Stitt–and they’re not happy.
Stitt, who lost his ranch in a wildfire that broke out in late March, expressed dissatisfaction with the Forestry department’s handling of the fires, saying the director failed to utilize all available resources. However, local fire departments, who work with the Oklahoma Forestry Services directly, say that former director Goeller is not to blame.
“Throughout his tenure, Director Goeller has demonstrated unwavering commitment and expertise in managing Oklahoma’s forestry programs,” the letter stated. “His leadership has been vital in coordinating wildfire response efforts, fostering collaboration among local fire departments, and ensuring that Oklahoma remains at the forefront of wildfire prevention and mitigation strategies.”
Before Goeller’s dismissal, federal cuts to Oklahoma through DOGE had already eliminated several positions from the Forestry Division at the onset of this year’s fire season, leaving the department underprepared for future breakouts.
Be sure to check back next Friday for the latest news in the fight for a secure retirement! For now, sign up for NPPC News Clips to receive daily pension news from across the country directly to your inbox.