[A] new tax expenditure concept, which is described for the first time in this article, achieves its goal by providing fresh consideration for each of the parties. This additional consideration takes two forms: a new tax credit allocation (i.e., this tax expenditure provides early access to retirement benefits, which would otherwise be accessible upon retirement, and thereby provides fresh consideration for public employees) and the right to discontinue offering defined-benefit pension plans (i.e., the waiver of this legal duty, which would otherwise need to be discharged, serves as fresh consideration for public employers). Because this fresh consideration is not tied to any pre-existing duty, and meets every other requirement, Pension Waiver Credits resolve the fresh consideration dilemma for public pension contracts
Johnson, Randall K., "Why U.S. States Need Pension Waiver Credits" (2016). Journal Articles. 126.