States cutting benefits for public-sector retirees

TRENTON, N.J. (AP) - William Liberty began as a trash collector in Lindenwold 37 years ago and worked his way up to public works supervisor. Until recently, he figured he would hold on to the job until he turned 65.

But last week, at 62, he was preparing his retirement papers, joining a rush among New Jersey public employees.

Liberty's reason for getting out now: He is feeling the sting of a campaign by Republican Gov. Chris Christie and a growing number of other public officials across the U.S. to balance their budgets by making government employment - and retirement - less lucrative.

Liberty's pay has been frozen for two years, he has been told to take unpaid furloughs, and now, "it's going to get worse." Pension proposals announced this week could reduce how much he receives when he retires.

Only four states - Florida, New York, Washington and Wisconsin - had fully funded pension systems as of 2008.

Among the developments around the country:

• In Mississippi, employees of state and local governments and school districts are now being required to put 9 percent of their pay into the state retirement system, up from 7.25 percent.

• Rhode Island in 2009 reduced cost-of-living increases and tightened eligibility requirements for retirement. Previously, employees could retire with 28 years of service. Now, those already employed by the state will have to meet a new standard that takes both age and years of service into account.

• In Wyoming, as of Sept. 1, employees will have to start paying 1.4 percent of their salaries into a pension fund - the first time in a decade the workers have had to contribute anything.

• Vermont earlier this year changed the retirement age for many current employees. They must be 65, or their age and years of service must add up to 90. Previously, retirees had to be 62 or have 30 years of service at any age.

• Lawmakers in Colorado, South Dakota and Minnesota rolled back cost-of-living increases this year for public employees who already have retired. In Colorado, retirees had gotten 3.5 percent annual increases. They are getting no increase at all this year, and future ones will be capped at 2 percent.