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Americans like public pensions, research finds

Submitted Photo The National Institute on Retirement Security reported the average retirement benefit for public workers is about $2,428 a month. Photo from Adobe Stock.

North Dakota is no stranger to public pension debates. States face pressure to keep retirement systems well-funded, and new data show most Americans place great value on such benefits for both government and private-sector workers.

According to the National Institute on Retirement Security, 86% of Americans believe all workers, not just those employed by state and local governments, should have a pension. There are similar approval levels when asked how important public pensions are in recruiting teachers and public safety workers.

Dan Doonan, executive director of the institute, suggested it is not too surprising to see the results.

“Pensions, along with other benefits, are part of creating that culture of careers and not jobs,” Doonan explained.

Starting in January, North Dakota will close its main public pension plan for new hires, who will instead be offered a 401(k)-style benefit. The move followed debate over whether it was the right way to address a $1.9 billion unfunded liability. Backers argued it protects benefits for existing workers and taxpayers, but skeptics contended it makes it harder to attract workers to the public sector.

Doonan noted the survey results overlap with the idea that maintaining an experienced public-sector workforce is a good thing for community members and not just the employee and employer.

“In general, when public services are done well, they’re often invisible, right?” Doonan said. “We want good roads. We want safe communities, and I think Americans understand the role of having career public servants in terms of delivering those outcomes.”

The Bureau of Labor Statistics said state and local governments employ about 20 million workers, which represents about 13% of the U.S. workforce.

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