Letter: Governments should get rid of costly pension plans

March 20, 2012

Recent stories in the Howard County Times bemoaned the catastrophic financial situation that would result if the county must pick up teacher pension costs. As well, two letters to the editor did the same.

Yet amidst all of this noise not one peep even obliquely mentioning the elephant in the room, namely the basic non-sustainability of pension funds. The private sector realized and addressed this some time ago, freezing pension plans and replacing them with defined contribution plans (e.g., 401K plans). The public sector must now do the same.

It's obvious to most of us, but seems to escape our current politicians.

Joe Loiacono

Ellicott City

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