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. This is the news you need to know in the fight for a secure retirement.
More States Eye Abolishing Property Taxes Despite Revenue Shortfalls
States across the country are preparing for drastic revenue cuts this year, as federal aid cuts and depleted COVID-19 funds cast a dark shadow over state budgets. However, some state leaders, potentially fueled by the upcoming 2026 midterm elections, are actively pursuing further revenue cuts by abolishing property taxes.
In Florida, people are speaking out against Governor Ron DeSantis’s proposal to slash property taxes in the Sunshine State. “First, local governments need to provide public schools, police and fire services, and roads, just to name some big-ticket stuff,” wrote one opponent to cutting property taxes. He went on to add, “Another source of money — probably the sales tax — would have to be raised to replace the revenue.” If property taxes are reduced in Florida, the state could face a $55 million revenue shortfall.
Ohio lawmakers are also talking about abolishing property taxes as well–and some think that it’s an incumbent strategy to garner votes in the 2026 midterm elections. Experts say that despite the increased burden to homeowners caused by soaring property values, significantly lowering property taxes would cause a host of revenue problems.
“Replacing Ohio’s property taxes would require implausibly high sales or income taxes, and there’s no way to replace the revenue without creating a host of new problems,” said Jared Walczak, vice president of state projects at the nonpartisan think tank Tax Foundation.
Federal Shutdown Affecting State Workers’ Wages in Virginia
The contentious government shutdown has caused problems for Federal agencies across the country, but now some state workers and the departments they work for are feeling the squeeze.
Beginning Wednesday, the state of Virginia is expected to furlough about 15 to 20 employees across several agencies as they wait for access to the federal funding sources used to pay them. According to Virginia’s Secretary of Finance Stephen Cummings, 71 agencies across the state use Federal funds for $11.5 million in weekly state agency payroll expenses, plus another $11.6 million in federal funds for payroll at colleges and universities.
Virginia employs more than 160,000 public employees, 7,000 of whom receive at least a portion of their pay from Federal funding. The government shutdown may only be affecting just over a dozen of those workers for now, but as the Federal pay freeze lingers on, more jobs and public services remain in jeopardy.
2025 Public Pension Compensation Survey Reveals Public Pensions Close Talent Gap
According to the 2025 Public Pension Compensation Survey conducted by the National Conference on Public Employee Retirement Systems (NCPERS) and CBIZ, 57% of public pension funds report no difficulty attracting or retaining skilled staff—up nearly 20% from 2022.
The key findings from this report, which surveyed 170 public pension funds worth over $6 trillion, determined that there are many factors to improving recruitment and retention, including:
- Clear pay practices: Most funds now follow a set approach to pay, usually aiming to match average market rates. This makes pay more fair and easier to understand.
- Better benefits: Funds are putting more focus on things like healthcare, retirement plans, and wellness programs—not just salary.
- Flexible work options: About 75% of funds now offer flexible hours or remote work, helping them attract talent by supporting work-life balance.
- Focus on keeping staff: Employees stay at funds for over six years on average—almost twice as long as in the private sector—helping keep experience and lower turnover costs.
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.