AARP Eye Center
States and localities should move toward full funding of their retirement systems.
Policymakers should consider the short- and long-term costs of benefit improvements and enact such improvements only if accompanied by clearly spelled-out funding plans.
States should make full contributions to retirement plans, as actuarially determined, and avoid taking funding holidays.
Retirees should have priority in bankruptcy, i.e., in state insolvency or receivership proceedings involving municipal entities, state agencies, and instrumentalities. They should receive all or a part of earned retirement benefits in such proceedings; at least enough to ensure that their basic needs can be met.