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State pension reform no long-term fix (political problems for bankrupt California RATS)
SF Gate ^
| Marisa Lagos, Wyatt Buchanan
Posted on 09/02/2012 4:38:29 PM PDT by Libloather
State pension reform no long-term fix
State still left with up to $500 billion in future debt
Marisa Lagos and Wyatt Buchanan
Updated 10:15 p.m., Saturday, September 1, 2012
Crane, a vocal critic of the pension system, suggests freezing and guaranteeing the benefits current employees have earned to date and, in future years, increasing employee contributions and reducing cost-of-living adjustments.
That prospect is controversial - unions argue it is illegal - but when Brown announced the pension deal last week, he said actions in some cities could result in a court ruling that such changes are allowed.
He told reporters: "Pension law is not static. And there will be cases coming out of San Jose, San Diego and Stockton that may reshape pension law over the next several years. And if so, that will open new avenues for further changes."
(Excerpt) Read more at sfgate.com ...
TOPICS: Crime/Corruption; Extended News; Government; News/Current Events
KEYWORDS: california; pension; rats; reform
The changes largely affect newly hired public employees while leaving many benefits intact for the current workforce.
In other words, it does nothing.
The state is screwed and that's the bottom line.The current retirees will bleed an already cash strapped state.The local gubmints are the canary in the coalmine and are declaring bankruptcy now.The source of the revenue is leaving the state in droves and the illegals sure as hell arent going to pick up the slack.
posted on 09/02/2012 4:47:52 PM PDT
by HANG THE EXPENSE
(Life's tough.It's tougher when you're stupid.)
according to CalPERS, estimates of the pension system's long-term shortfalls range from $90 billion to $500 billion. Unions criticized the overhaul for its cuts to retiree payouts, while business groups and others pushing for reform say it's only a start and the state must do much more.
Wait till the other shoe eventually drops and those receiving the government welfare pensions, see whats coming... And it's coming.
posted on 09/02/2012 4:48:05 PM PDT
(Diversion and evasion are tools of deceit)
Having to work until 62 instead of retiring at 55. Oh the HORROR. I do not believe these union idiots will even understand that they are driving cities and states in bankruptcy.
posted on 09/02/2012 4:50:50 PM PDT
(I will vote for Obama when he admits that his idea of a transparency means "You cannot see it")
CalPERS is their holy grail. They will allow every other entity in the state to collapse in order to keep CalPERS afloat.
Jerry Brown and all the other Democrat politicians in California should go to the coast with their shovels and pails and pack sand up their asses.
posted on 09/02/2012 4:55:35 PM PDT
("A crack shot and a good dancer")
suggests freezing and guaranteeing the benefits current employees have earned to date.......
posted on 09/02/2012 5:00:58 PM PDT
(No Rats, No Rino's)
Pension reform is necessary but only a start in the right direction. If they also do away with their single payer socialized schooling system and convert to a free market capitalist system they can make real progress.
Not only will they eliminate the current expenses and eliminate future obligations like pensions for the schooling bureaucrats, they can reap a huge infusion of capital by selling off the infrastructure.
Just selling the government colleges and universities would bring in hundreds of billions of dollars. Add to that the money the cities and towns would get selling off the K-12 schools and the positive impact on the economy would be huge.
posted on 09/02/2012 5:13:07 PM PDT
It's unfortunate that states as ill-governed as California could at some point hit a threshold where they revert back to Territorial status. The federal government step in and chop the place up into several smaller states. Might be a good thing for Illinois & Michigan also just declare Chicago & Detroit as an ungovernable no-mans land. If they wish they can cut a deal with Canada.
posted on 09/02/2012 6:28:43 PM PDT
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