No. of Recommendations: 0
Again, a guarantee is only as good as whoever stands behind it. All the laws & state constitutional requirements mean nothing if/when the state has no money.

The financial stability of a pension plan is always a concern and as I questioned earlier, the OP and other Colorado pension recipients should be well aware of its viability and what legislators can and can't do to it. One protection is that the state can't declare bankruptcy to get out of paying benefits.

What would happen if you paid all that money by buying years, but when it came time to collect on the pension, they said, "Sorry, we've had to change the deal."?

I agree that there should be another source of retirement income, but it's unlikely they'd be able to change the deal since it's the employees contributing from their salaries. The likely outcome is that the deal is changed for new employees. That's what happened in my state where there are 4 pension tiers, changes affecting new hires with each tier change. However, pension benefits are protected in the constitution (I believe only 9 states do this).
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.