Skip to comments.San Diego Pension Reform Ballot Initiative — the biggest untold story of 2012
Posted on 01/22/2013 4:21:44 PM PST by Kolath
Professor Jacobson made an exceedingly important point yesterday: Our focus must be on changing what we can change, protecting what we can protect, undermining what we can undermine, acting locally.
Based on my experience in San Diego, I cannot stress enough the vital role that local activism is playing in fiscal reform.
Here is Exhibit A as proof of the success of can-do citizen activism: Proposition B San Diegos Pension Reform Initiative.
The measure, which passed in June 2012 with over 65% of the votes, put new city employees (except police) into a 401(k) style pension, rather than a defined benefits package.
This measure was spear-headed by Carl DeMaio, the former San Diego mayoral candidate and City Council member, who has now turned into a taxpayer watchdog by organizing two separate reform groups (one focused on San Diego, one on California).
(Excerpt) Read more at legalinsurrection.com ...
Unfortunately the law didn’t go far enough. We should have converted all the current employees to a 401k preserving their already earned defined benefit pension. It will take years to have a positive impact on city finances now and the city still is spending too much on pensions.
And police are exempted because...?
I can only speak to fire and police retirements, but they are really expensive in California. LA fire gets something like 90% of their high three after 20 years and 100% at 25 years. That includes the ability to work lots of overtime to spike the last three years earnings. Why would somebody keep working if they made more by not working?
The reason a lot of feds keep working until they hit mandatory retirement age is because they make a fraction of their working salary in retirement and pays to work longer.
Here’s the kicker...
The State of California matches your 401K contributiot in 100%.
So, put in $5K, they match $5K.
What a state! What a country!
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