Comments on: The truth about pension reform Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 By: LowIncome Sat, 22 Feb 2014 16:07:19 +0000 Arnold is outright lying about unions grabbing extra pension benefits for the large majority of public employees. The plans were formed around 1948 by reworking older plans. Most were trimmed around 1977 as a result of the inflation crisis. Many were again trimmed in 2011. Maine, Vermont, Massachusetts and NH ran off single party, synthetic bankruptcies against their state and municipal employees. Contract law, pension law and bankruptcy law were ignored during the 2011 changes. The 1977 changes were implemented using lawful methods. The plans are not richer than 1948, they are much devalued. Taxpayers and bondholders were spared any sacrifice in the 2011 pension impairments. There is no obligation to responsibly fund state and municipal governments, tax cuts are always in style. New employees look upon the pension and health care plans as counterfeit.
State laws are pretty much worthless in protected vested pension rights. The new people would prefer a combination of a paid up annuity, social security and 401K to replace bogus pensions. They would rather be private contractors so failure to fund would mean loss of services to the government unit. People are barely able to govern themselves. They are completely unwilling to finance government units. You can see examples of financing failure every day in any newspaper of your choice anywhere on this planet. It is called devaluation, inflation, expropriation, impairment, capital flight, reform and restructuring. Tax cutting comes at a high price.