Tag Archives: Lillard

Change to State Pension System Discussed

State Treasurer David Lillard says Tennessee could reap substantial pension savings by diverting new employee and teacher hires into a 401(k)-style plan where the state contributes money but doesn’t guarantee benefits.
From a Chattanooga TFP story:
Lillard told the GOP-run Senate Finance Committee that the $32 billion Tennessee Consolidated Retirement System plan remains one of the “best funded” plans among states. The plan provides fixed benefits to 112,000 retired state and local workers as well as retired educators.
But Lillard warned that state and local governments face new contribution-rate pressures largely due to the plan’s investment losses during the recession.
“We fared much better than other pension plans did for the most part, but it still is a substantial loss in terms of this plan,” Lillard said. Tennessee’s pension has an estimated $2.7 billion accrued state liability that will have to be paid for or amortized over a 20-year period, he said.
Tennessee’s pension has an estimated $2.7 billion accrued state liability that will have to be paid for or amortized over a 20-year period, he said.
Senate Minority Leader Jim Kyle, D-Memphis, later said it appeared that Republicans are laying the “groundwork … to justify doing away with a defined-pension plan. Whether that’s the right thing to do or not, we’ll just have to see.”