Thursday, June 03, 2010

Fixing California's Pension Timebomb

The Reason Foundation (libertarians) has issued a report outlining the dire circumstances in which the State of California finds itself regarding promised pension benefits. One of the recommendations of the report is:

Close the defined-benefit pension plans for state employees and enroll all new employees in defined-contribution plans for pensions and other post-employment benefits, such as retiree health care and dental benefits.


California voters turned down a proposition on exactly this suggestion just a few years ago. This state might be doomed.

1 comment:

  1. As I recall that back when Arnooold was still a bit more of a Republican and much less a RINO he is now…the night four propositions went down in defeat.

    Not just California….one the reasons B Hussein Obama took over GM and Chrysler was if they went into bankruptcy court for reorganization they UAW might lose a lot of the benefits they get….like you get laid off and you can still get over 90% of your pay. Damned, I thought civil service was a racket!

    On that side, my department changed its retirement rules a few years ago for new hires. Instead of the 20 years 50% it’s now 25 years and you can’t draw the money until you’re at least 50. Hey, something has gotta give and I’d rather a smooth transition than the collapse that is coming in CA…or the US with Social Insecurity, Medicare, etc.

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