Munnell debunks the notion that all plans are in trouble. She finds that while a few plans are basket cases, many are functioning reasonably well.
Munnell’s analysis concludes that the plans in serious trouble need a major overhaul. But, even the relatively healthy plans face three challenges ahead: an excessive concentration of plan assets in equities; the risk that steep benefit cuts for new hires will harm work force quality; and the constraints plans face in adjusting future benefits for current employees.
She proposes solutions that preserve the main strengths of state and local pensions while promoting needed reforms. The book can be ordered for $29.95 here.