Tuesday, June 22, 2010

More on pension problems...

I know I'm a broken record when it comes to pension issues. The current Fayette County Board put county taxpayers in a similar position to New Jersey, Atlanta, GMC, etc., etc., when they switched from the county's balanced / award-winning pension plan to a cost-giant defined benefit plan. Ya know, the kind of cushy plan that every other business, city and county in the U.S. is now saying they can't pay, the one that is putting California, New Jersey and other jurisdictions and businesses in bankruptcy territory??? Did I forget to mention Greece? Similar bloated pension systems. If they'd tossed a plan that hurt county workers for a better system, I wouldn't have a problem. But they gave up a great plan that had a minimal impact on taxpayers for one that is going to come back and bite big someday... after they're out of office, of course.

Anyway, found the following scary and interesting:

NJ's poison pensions
NY may copy dumbest moves

Even if New Jersey Gov. Chris Christie wins his fierce battle to tame the state's out-of-control budget, the state will then still have to face its pension costs, which are spiraling out of control. Solving that problem will cost Jerseyans billions and will require tough reforms to cap future liabilities.

Meanwhile, New York lawmakers are actually looking to copy some of Jersey's worst mistakes.

How bad is the Garden State's situation? A new study by Joshua D. Rauh, a Northwestern University finance professor, warns that Jersey's public employee-pension plans could run out of money within a decade.

Read more: http://www.nypost.com/p/news/opinion/opedcolumnists/nj_poison_pensions_1hWxU3dPAY9osaecPSkcFJ#ixzz0raclgFy6

No comments: