A memo by state Comptroller Kevin Lembo details the cost of public employee pensions. For every dollar spent on most state employee, 46 cents goes to their retirement. This retirement plan reportedly applies to state university employees.
According to the Yankee Institute for Public Policy, a think tank based in Connecticut, the majority of regular state employees contribute 2 percent of their pay to the retirement fund. With the state’s contribution, the organization says there’s a “2,300 percent return on investment” for regular employees.
The retirement plan with the lowest burden is the Alternate Retirement Program, which is a defined contribution plan similar to a 401K. For every dollar spent on an employee, only 9 cents goes to the retirement fund. This plan is for employees at state universities.
Judges receive the highest retirement ratio, with 58 cents of every dollar going to retirement, but reportedly contribute 5 percent of their salary. Retirement accounts for employees eligible for hazard pay – such as police officers – receive 49 cents per dollar and contribute 5 percent, according to the organization.
Teachers contribute a reported 6 percent of their salary and their retirement costs 35.6 cents for every dollar spent.