Taxpayers and Public Pensions
As I've long maintained, THE pension dilemma of an aging population, low savings and greater liabilities is not simply a matter of economics. No politician wants to rescind benefits and/or raise taxes yet the reality in the United States and around the world is obvious. Taxpayers will increasingly force change by voting for candidates who promise reform.
A few days ago, I was sent a press release by the California Foundation For Fiscal Responsibility and was given permission to reprint it here. If you want to provide a countervailing opinion, send an email to contact@fiduciaryleadership.com with a few paragraphs stating your position. Let this important debate continue!
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Release: January 28, 2011 |
Contact: Marcia Fritz |
Should Public Employees Pay Half
the Cost of their Retirement Benefits?
SACRAMENTO – Continuing its online conversation about pension reform, CaliforniaPensionReform.com today asked the public to share their views on a second issue central to the debate over public pension reform:
Should public employees pay half the cost of their retirement benefits?
“Earlier this month, we announced that CaliforniaPensionReform.com will host an online conversation about pension reform,” said Marcia Fritz, president of California Foundation for Fiscal Responsibility (CFFR). “Our first Question of the Week asked if public and private employees should have similar retirement plans. A related question is whether government employees should contribute half the cost of their retirement plans. I’ll be thrilled if the responses are as thoughtful and instructive.”
CaliforniaPensionReform.com will circulate the Question of the Week and periodic updates to those who sign up on its Web site. Future questions include:
- Should public safety employees have different retirement plans than other government employees?
- Should taxpayers pay healthcare costs for the lifetime of an employee who retires from government service?
- Should an employee’s unused vacation and sick pay be considered when his/her annual pension is calculated?
On January 6, CFFR posted two alternative pension reform approaches on its Web site and invited the public to comment. Proposals from others will be posted for public comment as they become available. CFFR is reaching out to economists, legal scholars, financial analysts and pension managers to analyze pension reform proposals and contribute to the CaliforniaPensionReform.com online library. “California can’t solve its fiscal problems until it solves its public pension crisis. Whether lawmakers or voters do the job, we need a plan that has been thoroughly analyzed and debated by voters, stakeholders and experts,” Fritz said.
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