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Could states save money if raises during a recession were designated as non-pensionable?

Marguerite Roza and Hanine Haidar
Published May 15, 2020

Imagine if lawmakers passed a law that made all raises during recessionary times non-pensionable, or that made all raises going forward non-pensionable until the pension debt is fully funded. This brief analyzes both the two-year impact and the ten-year impact on teachers and governments if such a law were enacted by California, Illinois, Texas, and Vermont in 2008.