Comments on: California shows way through tricky pension mess http://blogs.reuters.com/breakingviews/2012/06/08/california-shows-way-through-tricky-pension-mess/ Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: weiwentg http://blogs.reuters.com/breakingviews/2012/06/08/california-shows-way-through-tricky-pension-mess/comment-page-1/#comment-11473 Thu, 24 Jan 2013 12:30:02 +0000 http://blogs.reuters.com/breakingviews/?p=12061#comment-11473 I say this as a liberal, and as someone who’s strongly against any further increases to Social Security’s retirement age, but I don’t think we can afford to let people retire at age 55. Barring disability, at least.

The previous commenter says that the city shouldn’t do anything to existing contracts, and it should just accept reduced services. You can only go so far with that. Remember, the city covers education and public safety. How much less of that is acceptable?

In addition, younger adults, of which I am one, won’t go into public service if there’s a huge disparity in benefits between the younger workers and a grandfathered class of older ones. There’ll be resentment. We’ll go into the private sector.

In any case, this is an issue bigger than just San Diego and San Jose. Pensions in general are hard to fund. The sponsor is taking on some very long-term financial liabilities. In addition, you ideally need people paying into the plan as well as drawing from it, and if the sponsor goes into hard times (like state budget cutbacks or the industry declines), then so does the pension.

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By: Yerrep http://blogs.reuters.com/breakingviews/2012/06/08/california-shows-way-through-tricky-pension-mess/comment-page-1/#comment-9343 Sun, 10 Jun 2012 05:40:40 +0000 http://blogs.reuters.com/breakingviews/?p=12061#comment-9343 This lets San Jose City officials off to easy, they claim they need more police on the streets, maybe they do. If the funding tax base is not there the public has to accept reduced services are a fact of life. That is the real issue.

City officials instead are using the ballot box to get popular vote to over turn an legal and binding contract. If the City is that desperate it should file for bankruptcy. As that is the legal way to reorganize city operation. See if the politicians have the intestinal fortitude to do so..

Personally wanting to join a organization that does not respect contracts and negotiated agreements is not one that bright and young people should be interested in.
Slashing pensions to fund operations is being done so at the cost of the pensioners…Ballot box initiative like this usually are rejected by the legal community. This one should be too.

Young talent wanting to join a public agency that does not honor its agreements and looks to make ends meet on the back of pensioners is one that the young and talented will look at in suspicion.

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