This session, Delegate Chris Jones introduced HB2251 as a recommendation from the Commission on Retirement and Pension Reform. This commission was established last session by Speaker William Howell. The commission met over the summer and into the fall and took action on commission recommendations right before the start of session. The commission recommended that VRS offer an optional Defined Contribution (DC) plan for employees hired after July 1, 2018. A couple of problems with this bill. First of all, the Commission heard conflicting information about the cost-effectiveness of a DC plan. A recent case study from the National Institute of Retirement Security identified overall problems with DC plans. First, they do not solve a state's underfunding issue, in fact they often increase pension costs and employees covered by a DC plan suffered higher levels of retirement insecurity. The report recommended that in order to address funding issues, states should implement a responsible funding plan for their current retirement plans. HB2251 does not do that. We also know the intention of this year's "optional" plan is to make it mandatory next session. A DC plan is best for those with career mobility and upward salary movement throughout a career. It is not good for teachers. Interestingly, Delegate Chris Jones is carrying this bill for the Commission and he voted AGAINST the recommendation to bring the bill to the General Assembly. The patron knows it's a bad idea. Lets tell our Senators to vote NO on HB2251.