A new study says Alabama state worker pension funds could run out of money in a decade if changes aren't made. The report from the Manuel H. Johnson Center for Political Economy at Troy University is part of a larger effort to look at improving the lives of Alabamians. Scott Beaulier is Director of the Johnson Center. Alabama Public Radio’s Ryan Vasquez recently talked to him about the paper and if the plight of Alabamians really differs that much from other states.
A study says pension funds serving more than 335,000 Alabama state workers and retirees could run out of money in a decade if changes aren't made.
The study released Monday was conducted by the Manuel H. Johnson Center for Political Economy at Troy State University. It says the Retirement Systems of Alabama are underfunded and rely on unrealistic expectations of 8 percent investment returns per year when calculating how much money will be available to pay future retirees.
Now, today is an important day for more than 40,000 salaried retirees of General Motors. They're facing a major financial decision. This evening marks the deadline for accepting a pension buyout.
Michigan Radio's Tracy Samilton explains.
TRACY SAMILTON, BYLINE: The GM retirees have two choices: either take a lump-sum payment - which can range from 400,000 to $800,000 - or their pensions will be shifted from GM's books to the private insurance company Prudential.