US / Orphan Clauses / State workers face smaller pension benefits

For public sector workers across the country, the difference of a couple of years, months or even days when starting on the job could mean the loss of hundreds of thousands of dollars in retirement benefits.

Facing ballooning bills and strained budgets, 45 states have either cut pension benefits or increased mandatory employee retirement plan contributions, or both, since 2009.

While some of the changes and cutbacks impact current state workers and retirees, the most significant ones affect new hires. As a result, those who become firefighters, teachers, garbage men or other public sector workers after the cuts go into effect will end up with considerably smaller nest eggs.

Chosen excerpts by Job Market Monitor from 

via State workers face smaller pension benefits – Feb. 11, 2013.