Kentucky’s governor-elect wants 401(k)s for new government employees.

Local governments should structure themselves in a way that best meets the needs of their budget, taxpayers and public employees. And the state should give them the power to do so.

In June 2014, in response to attempts by the state to reform government-worker health-care costs, Illinois’ Supreme Court found these benefits to be protected by the state’s pension clause ­– even though retiree health-care benefits are nowhere to be found in the state pension code. As a result, many assume that if the state can’t...

Illinois has the worst-funded pension systems in the nation. But there’s one group of state-government workers that isn’t worried about whether their retirement checks will be slashed. Today, more than 13 percent of all active employees in the State Universities Retirement System, or SURS, participate in a 401(k)-style plan instead of a traditional pension plan...

Given they depend on the nation’s worst-funded pension systems for their retirement security, Illinois’ government workers may want to take a look at how a group of Arizona firefighters are responding to pension-fund problems of their own. Arizona’s firefighters fear that out-of-control pension costs could bankrupt cities in Arizona, resulting in cuts to pensions like...

Over the last three decades, private-sector companies have transitioned away from traditional pension plans and toward 401(k)-style plans for their employees. While the traditional pension plans were unpredictable and unmanageable, these 401(k)-style plans offered companies a greater level of certainty in their budget and gave employees greater control over their retirement accounts. Today, 85 percent...

The recent Illinois Supreme Court ruling on state retiree health insurance benefits creates a major problem for both the state and local governments. The court ruled that retiree health insurance benefits are protected by the pension protection clause of the Illinois Constitution. The ruling will make it difficult to reform retiree health benefits and to...