BOSTON – The Pioneer Institute has found that the 105 separately-managed public-employee pension plans in Massachusetts are wasting $25 million each year, reported the Boston Business Journal.
The local think tank said in a policy brief Wednesday that consolidating the plans could save up to $22.5 million per year in employment costs and another $2.3 million in stipends paid to the board members who oversee each plan, according to the brief.
"Consolidation would streamline administration and improve transparency without compromising performance,” Pioneer Executive Director Jim Stergios reportedly said in a statement.
The Pioneer analysis found that the separate plans are overstaffed compared to other plans. The median individual plan in the state had 524 beneficiaries per staffer in 2011, compared to 2,597 beneficiaries per staffer in the statewide pension system.