The May 30 article "State Pension Overhaul Plan Stands Idle" was about Gov. Tom Corbett's proposal to put both new state and public school employees, as well as current employees who have a break in service, into a defined-contribution pension plan. This could have serious long-term consequences.
Two economists in the March 8 edition of the journal Science state that "the fraction of workers at risk of having inadequate funds to maintain their lifestyle through retirement is estimated to have increased from 31 percent to 53 percent from 1983 to 2010." The authors note that this trend follows an ongoing shift to defined-contribution plans, the kind of program suggested by Gov. Corbett.
Unfortunately, the Corbett plan will simply pass on to future generations the social and economic costs of dealing with an aging population with insufficient resources for an adequate retirement.
J. MATTHEW SIMON