Government Workers Union Rejects Need For Pension Reforms

Last week we highlighted Governor Burgum's plan for a pension fund bailout and said it would be better if there were specific policy reforms attached to it. Those reforms are becoming more clear, as is the fact that this will be a fight with the government workers union.

According to the governor's budget recommendation, in addition to the $265 million bailout: "The Governor supports bill drafts recommended by the interim Employee Benefits Programs Committee to reduce the unfunded liability through eliminating the retiree health insurance credit benefit and reducing the retirement benefits multiplier for newly hired state employees. The executive budget includes funding to support a third bill draft recommended by the Employee Benefits Programs Committee to increase the state and the employee retirement contributions by 1.0 percent each, beginning January 1, 2020. In addition, to ensure the state commitment to fully fund the defined benefit retirement plan, the executive budget include…