Kansas legislators are hearing a pitch for starting a 401(k)-style pension plan for new teachers and government workers from former U.S. Sen. Bill Bradley of New Jersey and a Nobel Prize-winning economist.
Bradley and the economist, Robert Merton, a finance professor at the Massachusetts Institute of Technology, spoke Monday to the Kansas House Pensions and Benefits Committee.
Bradley and Merton are advisers for Austin, Texas-based Dimensional Fund Advisers, which manages such plans in the private sector. They told Kansas lawmakers they could pursue innovations in managing a new plan that would make it friendly to employees.
The committee has been working quietly for weeks on legislation aimed at bolstering the long-term financial health of the state pension system. Part of its plan is a 401(K)-style plan for new hires.