Is Hawaii pension system too expensive?

Hawaii is beginning to engage in the same debate taking place in other parts of the country. The question is whether the pension system for the state's public employees is too costly.

This story in the Honolulu Advertiser casts the issue as a conflict between state workers and their private-sector couterparts.

Kaimuki resident Ward Fukunaga can only wish he had the pension benefits that state and county workers receive. As a self-employed businessman, he hasn't been able to save anything for his retirement.

"When you're in the private sector, you take that risk," said the 34-year-old Fukunaga.

Hawai'i's more than 63,000 state and county workers are enrolled in a traditional pension plan that guarantees payments for life, a benefit that is becoming more rare among private employers.

Only four in 10 Hawai'i companies offer traditional pensions, according to one survey. The move away from traditional plans is prompted by the high cost. This year taxpayers will contribute $400 million, or about $300 per person, to the pensions of state and county workers.

Is it time to consider a less expensive pension system for government workers?

"It's something that people should talk about," said state Rep. Kirk Caldwell D-24th (Manoa, Manoa Valley, University). "They're going to have to be looking at some of the things the private sector is doing."