A new study shows Wisconsin's pension system for public workers is in good shape.
One of the lynchpins in Gov. Scott Walker's "budget repair bill" requires state workers to pay more than they already do toward their retirement, or pension, plans. The rate will go up to 5.8 percent of a person's salary.
A study by the national Center for Economic and Policy Research shows the pension fund is fully funded, and one of the most economically healthy in the nation.
The Center on Wisconsin Strategy followed up on the national study. Laura Dresser is the center's Associate Director. She says the budget repair bill and its increased employee contributions is basically a pay cut. Even if that pay is "deferred" until one retires. Dresser says "it sort of implies that there's a problem in the pension system, or that the pension system is underfunded. And we need workers to be putting money into it, more than they were. But the structure of the pension system isn't a problem. There's plenty of money."
In fact Wisconsin's pension fund would have too much money in it, if not for the recession which has hurt investments across the board.
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The State of Wisconsin Investment Board oversees the pension fund. Unlike some other states, Dresser says Wisconsin has not "raided" money from the fund to fill other budget holes.
