WASHINGTON--(BUSINESS WIRE)--Following is the statement of Hank Kim, Esq., Executive Director and Counsel for the National Conference on Public Employee Retirement Systems (NCPERS), on pension legislation proposed by New York City Public Advocate Letitia James:
“The National Conference on Public Employee Retirement Systems (NCPERS) applauds New York City Public Advocate Letitia James’s proposal for creating a pension fund for the city’s private-sector workers. Legislation she introduced today – to create an advisory board to examine ways to establish a centrally pooled retirement fund – is an important first step in helping the vast majority of New Yorkers prepare for retirement.
“While the entire nation is facing a looming private-sector retirement crisis, the situation is particularly acute in the New York region, where the percentage of workers covered by any kind of at-work retirement plan has been decreasing steadily – falling to 41 percent in 2012 from 49 percent just a decade earlier.
“NCPERS has been working with forward-looking state and local policymakers in a number of states who are concerned about the negative impact on their economies and government assistance programs as the number of retirees with insufficient financial assets grows.
“NCPERS has designed a model for addressing those concerns -- its Secure Choice Pension (SCP) proposal, envisioned as a public-private partnership to provide retirement security to private-sector workers, particularly those who work for small businesses. The concept is that states, individually or possibly in groups, would enact legislation to establish multiple-employer hybrid defined benefit pension plans. Participation would be voluntary, and contributions would come ideally from both employers and employees. All contributions would be pooled and professionally invested. At retirement, covered employees would receive an income for life, immune from the vagaries of the stock market or sudden economic downturns – at no cost to taxpayers.
“Illinois, California, Massachusetts, Connecticut, Oregon, Vermont, Minnesota and West Virginia have either adopted or are seriously studying such plans, and legislation to create similar plans is pending in other states. As the private-sector retirement deficit – now estimated in excess of $14 trillion – continues to grow, retirement security must become a high priority in our national and local political debate. NCPERS will continue to work with policymakers at all levels of government to make retirement security for all a reality.”
About NCPERS
The National Conference on Public Employee Retirement Systems (NCPERS) is the largest trade association for public sector pension funds, representing more than 550 funds throughout the United States and Canada. It is a unique non-profit network of public trustees, administrators, public officials and investment professionals who collectively manage more than $3 trillion in pension assets. Founded in 1941, NCPERS is the principal trade association working to promote and protect pensions by focusing on advocacy, research and education for the benefit of public sector pension stakeholders.
