NASRA Writes Letter to Grassley

September 2006

The National Association of State Retirement Administrators recently sent a letter to the chairman of the Senate Finance Committee requesting assurance that a study by the Government Accounting Office on the financial condition of state and local government defined benefit pension systems accurately portrays the differences between state and local government systems.

The leaders of the Senate Finance Committee, Senators Chuck Grassley (R-IA) and Max Baucus (D-MT), sent a letter to the Government Accountability Office (GAO) requesting the study on July 10. The study was requested due to concerns about the many public pension plans which are poorly funded and have no back-up source, as do private pensions.

NASRA’s letter, which was signed by 28 national organizations representing over 20 million public sector employees, retirees, and their beneficiaries, requests that the senators and GAO use them as resource in developing the study, particularly in determining the distinctions between state and local plans, and the specific ways each handles retiree health benefits.

Accurately written, the study could ultimately “strengthen retirement programs,” the letter states.