Short-term savings for state could mean long-term costs for ERS: TANSTAAFL

The Austin American-Statesman's Kate Alexander reports on testimony by Ann Fuelberg, executive director of the Employees Retirement System of Texas, before the Texas Senate's Committee on State Affairs.

"Some 18,000 state employees — 13 percent of the workforce — are already eligible for retirement." Any policy that made retirement more attractive than staying on the job "could ripple through the pension fund." A sharp increase in retirees--with commensurate annuity costs--would occur at the same time as a likely drop in pension contributions--presumably because employees replacing the retirees would be earning lower salaries.

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(TANSTAAFL? There Ain't No Such Thing As A Free Lunch)