Most public workers in the United States are enrolled in an employer-sponsored defined benefit plan, also called a pension plan. For those who work a full career in education, public safety, or other state and local government jobs, a pension can provide guaranteed income for life in retirement.
This is the promise that governments make to public employees, and it’s the main benefit that pensions offer.
Unfortunately, most other details about how public sector retirement benefits work are often unclear. For example, did you know that, for workers who leave careers in public service early, their years of service may not be enough to qualify for meaningful benefits, or any benefit at all?
The Pension Basics Series
Equable’s “Pension Basics” is a series of short articles designed to explain how pension benefits work in the real world. Each article takes only a few minutes to read and includes links to more in-depth resources when you’re ready to dig into any topic further.
1. How Pension Benefits Are Calculated
2. Vesting
3. The Pension Funding Formula
5. Normal Cost
6. Unfunded Liabilities (aka Pension Debt)
7. Actuarially Determined Contributions
11. Pension Myths & Facts: The Assumed Rate of Return Does Not Determine the Value of Benefits
12. Pension Myths & Facts: The Funded Status of Pension Plans Does Not Depend on More Public Employees
