Saving for Retirement - Government Pensions May Be at Risk
A number of state and local governments are under tremendous financial pressure. Some cities and states spend significantly more than they generate in taxes, creating pressure on legislatures to make major changes.
How can you determine if your pension is at risk? First, find out if your pension is fully funded. If it is, your pension should not be at risk. If it is not fully funded, your legislature may decide to change the laws to allow pension benefits to be cut. If your pension is not fully funded, or your city or state is struggling financially, and you sense that public opinion is leaning towards cutting government pay and benefits, start increasing the money you put aside for retirement. Most government employees can fund a 403(b) or 457 Plan. Any money you place in those types of plans is safe.