A guest editorial by RSI board member Dan Liljenquist this week in the Lincoln Journal Star talks of the challenges Lincoln faces if its police and fire pension is not reformed. The plan, currently $190 million in debt, is on a slippery slope toward insolvency if structural changes to the plan are not made soon, argues Liljenquist.
Lincoln has an opportunity to reform its plan with RSI-supported Legislative Bill 30 (LB30), by Nebraska State Sen. Mark Kolterman, which would move both Lincoln's and Omaha's police and fire plans closer to sustainability, according to Liljenquist.
"LB30 would transition new employees from the current defined benefit structure to a cash-balance program that uses lower assumed return rates and cuts future risk in half," wrote Liljenquist. "The reform would not affect current employees and retirees, except to help ensure that retirement promises that were made to them can be kept.
"Lincoln has a real opportunity with LB30 to make its police and fire pension plan sustainable, cutting the risk for workers and taxpayers," he continued. "It’s an opportunity that, in my opinion, Lincoln should readily embrace, instead of just waiting and hoping for the best."
To read more of Liljenquist's editorial, click here.
To learn more about LB30, click here.