An article by Barry Greenfield in EfficientGov (look to your right for a link to the article), lists six solutions to the unfunded pension obligations facing Newton, along with almost all cities, towns, and states in the U.S. They are:
1. Update actuarial tables so they accurately reflect our longer lifespans
2. Increase retirement ages
3. Cap base compensation levels that on which pensions are based
4. Place new employees in either 401k-style defined compensation plans or hybrid plans where risk is shared between the employer and the employee
5. Place caps on the amount employees can receive annually
6. Use cost-of-living adjustments cautiously or only when plans are funded by a minimun level
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