DES MOINES, Iowa– Sam Clovis, a Republican running for state treasurer, believes both state workers and taxpayers will ultimately need to pay more to better secure Iowa’s pensions system.
A consultant recently found the state’s retirement plan for 325,000 workers is nearly $6 billion short. That puts it at 80% funded, down substantially from 97% funded a decade ago.
Clovis said, “We’re going to have to ask for a higher contribution for the employers. We’re going to have to pay more. I think also we’re going to have to start to have more pay down and it has to be a deliberate effort on the part of our general assembly to set aside money to start buying down this debt.”
Lawmakers already agreed on a host of changes last year that increased employee contributions, extended the time they need to get vested in the program and changed the way the state computes their pension amount.