According to Molly Beck of the Wisconsin State Journal, Senator Duey Stroebel (R-Saukville) plans to introduce a bill that would lay the groundwork for “changes to state workers’ pensions that could reduce the monthly payouts and raise the age at which they could retire.” His reason: To ensure solvency of the state retirement system, even though this system is already solvent. A representative for the Employee Trust Fund stated that the retirement system can currently cover 100% of its obligations.
Here are the two specific details of the bill, which you can find by going to the School Administrators Alliance website:
- The bill would base retirement payments on the average of the last five years of a public employee’s salary, instead of the last three years. This would reduce retirement payouts by approximately 2.4%.
- The bill would increase the retirement age of public employees from 55 to 57, and of public safety workers from 50 to 52.
One of the people interviewed for this article summed up this potential legislation with the follow statement: “This is a solution in search of a problem.” If you would like to contact your local legislators about this development, click here.