Texas public pensions say moving away from traditional defined-benefit plans won’t shrink their unfunded liabilities, in contrast to money-saving steps to end lifetime guarantees by states from Rhode Island to Kansas.
The state’s $110.3 billion Teacher Retirement System released a study saying that switching to a 401(k)-style defined-savings plan may cut payments to retirees. The fifth- largest U.S. public pension by assets say that the change also would widen a $24 billion gap between promised benefits and projected assets to $36 billion.
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