Minnesota is not the only state with a public-pension mess on its hands. Pennsylvania, for example, has one too. The Keystone State just kicked the can down the road, thus providing Minnesota with an example of what not to do.
The state enacted a law that still assumes it will realize an 8 percent return on investments, and makes no changes in eligibility or payments. It also doesn’t change the state from a defined benefit to a defined contribution plan, which means taxpayers will be on the hook.
If I recall correctly, one chamber of the Pennsylvania Legislature as well as the governor’s office will flip from D to R in January. Lame-duck changes like this are just one example of the dangers of having a full-time legislature. At least Minnesota doesn’t have that.