! - Lessons from the States on Entitlement Reform - Executive Summary

Next, we look to a subset of states that approved COLA reductions and review the political composition of those states and the content of the legislation in order to draw critical lessons from these policy shifts. [...] While the two programs share some some similarities, there are also key differences in the design and similarities, there are also key differences in the design and operation of the two operation of the two systems as well as the nature of the systems as well as the nature of the challenges facing each. [...] Workers, and Collect annual contributions from workers and their in some cases employers, contribute to the DC plan, with investments based on employers; invest those the preferences of the individual and the benefit at retirement dependent on proceeds in a mix of equities, bonds, and alternative the accumulated balance. [...] For example, employee contribution rates rose in Social Security, the employee contribution increases and 40 states and annual employer contributions grew from $100 billion in 2010 COLA reductions—particularly those that applied to the current to $180 billion in 2020.32 On the other side of the ledger, 40 states adjusted generation of workers and benefit formulas in order to yield lower pension pa. [...] Pension benefits are subject to collective bargaining in Connecticut, and the 2017 vote reflects the House and Senate actions on whether to confirm the agreement between the State of Connecticut and the State Employee Bargaining Agent Coalition.