Public awareness of the scope of the state public pension
crisis seems to be growing every day. That’s a welcome development, in that it
has led to state officials to look for ways to reform their underfunded pension
systems. The question they face is: How?
For ideas for reform, they should look to a new report by
former Utah state Senator Dan Liljenquist, who led his state’s
wide-ranging and successful pension reform. The report, published this week by
the American Legislative Exchange Council (ALEC), puts forth ideas for reform
based on some basic principles. First, all new employees should join a defined
contribution (DC) system. Second, payments that are due under state’s current
pension systems must be paid and reasonable adjustments to current benefits
should be made, as courts allow.
For specific reforms, the study offers three basic
options: 1) defined contribution plans, such as 401(k) plans; 2) cash balance
(CB) plans, which have aspects of both defined benefit (DB) and defined
contribution plans; and 3) hybrid plans, in which the employer makes a fixed
contribution, as in a defined contribution plan, and employees have the option
of joining with other employees to create a defined benefit option….To ReadMore….
My Take - This
kind of thing is inevitable. The day is
now long past when public employees can be catered to in order to gain their
support by spineless corrupt politicians.
No matter what plans are presented to fix this issue there are a number
things that will absolutely happen.
Government
employees will lose their jobs, and those services will end or be farmed out to
private companies. Their pension plans
will be altered downward - and it will spiral downward – and eventually all
states will ban public employee unions.
What will give
these spineless politicos to courage to do this? Bankruptcy - get over it - that is where it
is all heading. The world is in a
financial crisis that is being masked by a corrupt media, corrupt big business,
and corrupt leaders hoping to fend off the inevitable. The
federal government has up to 100 trillion in debt and unfunded
liabilities. The federal government has assets
of 128 trillion dollars, as outlined in these two postings, Get Out of
Debt Card!, and Uncle Sam’s
hoarded, wasted wealth.
Why?
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