Re the Feb. 3 editorial, Past time for pension reform, overlooks a key point.
The problem isn’t employee contributions, but rather the state slashing its contribution. Many of us have been making substantial contributions to our 401(k) and are happy to do so.
When I began working for the State University System in 1996, employee contributions were matched up to 11.4 percent. While the economy was booming in the late 1990’s the state cut its share, arguing that markets were so strong that a lesser contribution would still meet the expected returns.
Now contributions have to be cut because times are bad. The state’s contribution is now at 5.14 percent, a level that will not provide a secure retirement for employees entering the system. The ticking time bomb is the coming generation of retirees that will be living in reduced circumstances or poverty due to inadequately-funded plans.
Timothy Collins, Homestead