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Sunday, November 18, 2012

''A Simple (But Hard) Way to Improve Public Pensions''

From Governing.com

''Public-employee pensions have long been a hot topic for Better, Faster, Cheaper. I have more than once made the case for switching from the traditional defined-benefit approach to a defined-contribution system with a cash-balance option that would insulate governments from short-term market fluctuations. For risk-averse workers, the cash-balance component would guarantee employees an annual interest rate on their contributions and the employer's match.''

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