"New hires will be able to choose between defined contribution plan (like a 401(k)-style savings plan) or a hybrid defined benefit plan rather than the traditional pension system. New hires will have the salary cap for pension calculations reduced from $265,000 to 110,000 per year, seriously limiting incentives for finding ways to 'spike' pensions with bonuses or unused vacation time to jack up what retiring employees will be receiving. The eligibility age for new hires will be increased from 52.5 to 55.... The Reason Foundation calculates savings of $1.5 billion over 30 years and a reduction of retirement costs for new employees by 20 to 43 percent."  MORE >>