In a new Forbes column, NIRS Executive Director Dan Doonan details how defined benefit pensions play a crucial role in recruiting and retaining public-sector employees, especially for education and public safety positions.
He writes that there’s is a good reason why public-sector employers continue to offer pensions: these plans keep workers in their jobs for careers. Some public-sector jobs, like accountants or attorneys, have direct counterparts in the private sector, so it’s relatively easy to switch between the two sectors. Other public-sector jobs, such as teaching, policing, or firefighting, don’t have direct private-sector counterparts, so it’s harder to find workers who have experience in those areas. Moreover, many public-sector jobs require years of training and experience for workers to reach their peak effectiveness. This training often comes with costs and impacts the quality of public services. Public-sector employers and taxpayers therefore have a strong incentive to keep these workers for a career to get a return on their investment.