“I write today out of concern over an unintended glitch
in the wording of the state’s public pension funding law that would
significantly reduce pension benefits under the “money purchase” option if
retirement-eligible employees continue working beyond June 30, 2014.
The wording was actually meant
to preserve (or “hold harmless”) employee benefits when the new pension law
lowers the interest rate used to calculate monthly annuities under “money
purchase,” effective July 1, 2014. It sought to lock in annuities for
retirement-eligible employees to the level they would receive on June 30, 2014,
even if they retired months or years later. “ READ MORE
Title: “Pension update re money purchase”
Author: Robert A. Easter
Source: Office of the University President
Date Published: April 24 2014
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